Simple single rate from easyMobile triggers price war |
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Published
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Sat, 12 Mar 2005 01:00
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The launch of no-frills service form easyMobile has sent mobile operators searching for cover. The new service from easyMobile claims to offer the cheapest calls in UK at a flat, 24x7 rate of 9p per minute and 3p for a text message. Interestingly, the customers will no longer be required to pay monthly subscription fee.
The Danish company TDC that operates easyMobile service says the rates, at first to be tested for 3 months, will reduce current prices of 10p to 30p during peak hours and 5p to 25p during off-peak, while text messages prices will hover around 10p.
| Similar products have been launched in Scandinavian countries, where call rates have come down crashing.
easyMobile is confident that its simple single rate will also draw millions of users in UK and from brands like Vodafone and Orange to its service, as users are confused at the different tariffs marketed by big network providers. In fact a recent survey conducted by Which? suggested that subscribers were wasting billions of pounds using unsuitable tariffs.
The launch is already causing concern at Vodafone, 02, Orange and T-Mobile as they believe that easyMobile’s simplicity could attract many users to switch from their current service.
easyMobile’s rivals such as Carphone Warehouse's Fresh mobile brand, which has 120,000 customers and charges 15p a minute for calls and 5p for text messages, is planning to drop its rates well below the easyMobile tariffs. Virgin Mobile, which has 4 million customers, is also working on strategy to bring down its prices. Vodafone meanwhile is considering launching low-cost 'sub brands' to gain customer confidence.
easyMobile is able to keep its prices low as it will share its calls on the T-Mobile UK network and keep customer services to bare minimum. There won’t be any outlets and customers will be sent simcard by post after the orders are made on the internet using a credit card.
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