O2 Slashing Handset Subsidies (read: Raising Phone Prices)

fiish

epz wrote: »

i think the bill of materials for the n96 is significantly less than the n95 so its not the manufacturers.

I don't know how much it costs Nokia to make an N96. However, having a lower bill of materials just means it costs Nokia less money to make the phone, and that although they can afford to sell it for less, they can still sell it for a higher price and take in the profits, if they think it will sell at that price.

geomac79

Woby_Tide wrote: »

not really, the concept of expecting a free phone with a contract is a very English thing, in most other counries you'd always be paying upfront for at least part of the handset, sounds more like they are standardising throughout their mrkets

You get a free phone in stores in Scotland as well so it is not just a English thing, No doubt you get free phones in Wales and Northern Ireland as well.:mad:

asandwhen

geomac79 wrote: »

You get a free phone in stores in Scotland as well so it is not just a English thing, No doubt you get free phones in Wales and Northern Ireland as well.:mad:

I dont think stealing them counts!

jimgee

Woby_Tide wrote: »

not really, the concept of expecting a free phone with a contract is a very English thing, in most other counries you'd always be paying upfront for at least part of the handset, sounds more like they are standardising throughout their mrkets

Vodafone have more markets than o2 and they have no plans to "standardise".

fiish

jimgee wrote: »

Vodafone have more markets than o2 and they have no plans to "standardise".

Well if they shifted pricing to their 'standard' they would lose a lot of customers quickly. I think what the mobile companies could want to do is move closer to US pricing levels and contract lengths (pay a fairly high price for the phone and be locked in for 2 years); but they're going to do it slowly, in little steps so that we consumers get used to it.

Kind of like slow-boiling a frog. :rolleyes:

And if they play their cards right they'll almost certainly get their way. Deals have got better in recent years in exchange for longer lock in periods (12 months minimum has become 18) and probably only because 3 has been offering better deals than anyone else.

http://en.wikipedia.org/wiki/Tacit_collusion ; Wiki article on the apparent cartel-like behaviour of mobile providers

piggeh

It's not just mobile operators either is it, all the time British Gas will come out and say they need to put prices up 20%, then all others will follow suit (despite their already massive profits).

jammin_2

geomac79 wrote: »

You get a free phone in stores in Scotland as well so it is not just a English thing, No doubt you get free phones in Wales and Northern Ireland as well.:mad:

Next he'll be saying that the UK is an island nation as well... lol

Back on topic: It's the networks that spoilt the market, many moons ago, when they decided to give away free phones in order to get people on contract. As has been quite rightly pointed out, go to pretty much an country other than the UK, and expect to pay for all but the most basic of mobiles phones - and sometimes you even have to pay for those.

As I said, the networks spoilt the market, with 100% subsidy. But they can't just take it away now. People wouldn't stand for it. It's their fault that free phones is the norm in the UK, so tough. It's not like they're not raking it in anyway.

Scousebird_2

gaming_guy wrote: »

i saw a load of photocopied sheets saying that in my local vodafone store the other day.

apparantly the price rise was because of all the troubles with the (rather rubbish ) iphone 3g crashing the credit check system - more here (4th post down)

How compliant....wonder if they had permission from O2 to do that? Bit of unfair tactics going on there.

I like O2 personally and I know people who work for them and are treated really well-and that's in Sales roles and customer service roles so I can't really complain about them. They've always looked after me as a customer. And considering their old demerged parents at BT have become complacent, I think O2 are doing quite well.

Credit where it's due-out Government built a great big round dome and for the millenium it was supposed to be the best thing since sliced bread. Then when it fell flat on its !!!!-the Government sat there for a year scratching their overpaid heads wondering what to do with this big empty shell.

Then it took a telecommunications company to stand up and say-oooohh, let's turn it into an arena. Bloody good thinking!

Maybe O2 can help us out of the recession we are heading for seeing as they seem brighter than our PM!

I know this is off on a tangent but my point is this. O2 offer great service and provide good, clear and transparent products. That's good enough for me and I will pay a little bit more for a UK call centre and quality, reliable products and services.

Scousebird_2

digp wrote: »

It may be Matthew Keys (not too sure) but Peter Erskine has definitely left:quote]


It is Matthew Key-he's a very nice man, met him and he's very down to earth.

fiish

Scousebird wrote: »

O2 offer great service and provide good, clear and transparent products. That's good enough for me and I will pay a little bit more for a UK call centre and quality, reliable products and services.

Ditto. It's probably not in a MoneySaver's favour to have a favourite telco, but I have been with O2 for 3 years and counting, with good reason. Their mobile tariffs are slightly on the expensive side but from friends' experiences the broadband is a winner.

They may be putting prices up, and I shall continually threaten to switch , but I do like the service I've been getting. And the exellent coverage, of course (not to mention the usually unlocked unbranded handsets)