Mobile Phone Reviews
 
 
T-Mobile attempts to cut tariff confusion

Tue, 07 Feb 2006

Mobile phone tariffs, is enough to confuse anyone. T-Mobile is launching a new way of using the mobile phone through ‘Flext’ which offers standards of value and flexibility and will also increase its investment in the UK. This will help T-Mobile expand their share of the market, raise customer usage and loyalty.

The investment is due to record customer growth in the fourth quarter of 2005 and they are looking to build on this.

Essentially Flext is a new way of charging for making mobile calls, reducing the rigidity of tariffs, introducing standards of contract value that is designed to cut the shock of bills. The way Flext works is it looks at value in money spent each month rather than on the number of minutes and texts. It will allow customers to pay for whatever mix of minutes, texts, voicemail and photo messaging that suits them.

Using Flext lets call rate be as low as 3.9p per minute and texts costing 1.94p each. Compare this with the cheapest pre-pay service costing 15p per minute and 5p per text and contract rates ranging from 10 per minute and almost the same cost per text.

An example of how Flext would work is if the Flext 35 bundle costs £35 per month and gives 900 minutes of talk time or 1,800 texts (or any combination of these.) The voicemail and photo messaging will be charged at 10p per minute and 20p respectively.

Customers will also be sent a free weekly text giving them the balance of how many minutes and texts they have left and any other credit.

A ‘BestPlan’ check up will be carried out every 6 month automatically to see if they should move up or down the Flext tariff scale that can vary from £20 to £75 per month.

Each Flext contract runs for 18 months.

The Flext 20 and 35 bundles were launched this week only through T-Mobile’s own stores and direct sales channels. From 1 March, Flext tariffs will be launched through independent dealers as well as T-Mobile’s channels.

Jim Hyde, Managing Director of T-Mobile UK, said, "We intend to grow our market share, and simple fair value for our customers is at the heart of this.

"Mobile costs are too high; tariffs are too complicated and rigid; and customers often feel ripped-off when their actual bills frequently exceed what they think they’d signed-up for. This is no way to encourage loyalty and usage.

"The way customers use our services varies month by month, and often unpredictably so. Charging set amounts of minutes and texts therefore doesn’t work for many customers.

"With Flext, we’re introducing a brand new concept. Totally flexible mobile usage for voice, texts, picture messages and voicemail, all with exceptional value. We’ve significantly increased the number of minutes and texts our customers can use at the most relevant price points and we’re coupling this with weekly up-dates, so customers know their usage, as well as our ‘BestPlan’ promise."

Phil Chapman, Marketing Director of T- Mobile UK, said, "Mobile has to think through customers’ minds and answer their needs, not do what happens to be traditional and suits the mobile operators. Having customers feeling confused and facing bill shock is not a recipe for success.

"Flext listens to what our customers want and delivers flexibility, value and an inclusive mix of services, which should meet practically everyone’s needs - without their having to exceed their monthly contract payment."
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