Some mobile phone users in the UK have long been aware of the battle for subscribers that is waging between the main providers. An increasing number of us are learning how to exploit that everytime our contract comes up for renewal and are finding that suppliers are usually willing to add extra minutes and texts and offer attractive upgrades in order to keep our custom.
The latest network operator to join the UK market, 3, has some of the most attractive offers available, though outside of the cities, the word on the streets is that their network coverage isn’t as strong as the others, which may be one of the reasons they have been having to undercut their rivals. Today, 3 has announced another seemingly stunningly good offer which will heat up the battle before the Christmas peak purchase of new handsets.
3 are now issuing mobile handsets which will allow their network users to call each other for free using Skype. In addition to gaining new customers, 3 also hopes the innovation will be attractive enough to boost loyalty. At present, some 30% of 3’s contract customers quit every year.
Skype has to be one of the best things on the internet that has emerged in the past five years. Ok, there are other providers around that will let you text other subscribers and phone them via the internet for free, but in my view, Skype has consistently provided the best quality calls and the best reliability. It has also had the flexibility to allow you to call regular landlines as well for a small fee. Now, the ability to easily harness Skype on your mobile handset seems very attractive.
To date, mobile phone companies have been unwilling to let users freely access Skype via their handsets for fear that it would hurt their business. While it is possible to access Skype from a number of handsets, this has involved downloading third-party software, something that has put off the majority of users. The Skype-phone will be the first instance of a phone operator launching a mass market device that is designed to allow free calling over the internet from a mobile.
The 3 Skype phone has a prominent button above the standard keypad that activates Skype. Pressing it triggers an application that calls up a list of that user’s Skype friends who can be called for nothing on their mobiles or laptop. However, the phone will not feature SkypeOut, which lets users make cheaper-than-usual calls to people who are not on the Skype service.
At first sight this moves looks as if it may rob the network provider of income it would otherwise have received. However, it is almost certain to generate more subscribers for 3 and for Skype. There may be a slight loss of call income, but in order to get the free service, 3’s customers will either have to take out a contract or keep their pre-pay topped up.
If you are paying on a contract for 500 free minutes a month, you will still be paying that, whether or not you use the minutes. And of course, you can only use Skype to call other Skype users for free - you won’t be able to use the Skype service on your mobile to spontaneously call someone who doesn’t have a Skype account.
Once 3 have attracted you into their contract, the free Skype service is only likely to benefit you if you are one of those people who talks for hours and who regularly goes over your monthly contract limit, i.e. lovers or teenagers. As I don’t qualify in either category, I personally will resist the temptation of the exciting new, will stick with my phone, and will use Skype on my computer whenever I need to. Bah Humbug!
I used to study network tariffs. I set up a spreadsheet and for a year fed our monthly bills into it to see which one gave the cheapest result. I haven’t done this for quite a while, so I am out of date on what is on offer but as my current mobile bill is around £5 per month I see little reason to change.
Network tariffs are an exercise in smoke and mirrors. The object is to fool the customer into thinking he is getting a great deal while keeping income high. The sensible customer doesn’t look for “deals” but for the tariff that works best for his pattern of usage and changes tariff when the pattern changes.
Also beware of contracts. These days I won’t touch them. First they charge you for a phone and then go on charging you for it even when you have paid back the cost. Giving you “upgrades” is a way of justifying continuing to charge you for the purchase of the phone. Buying an unlocked phone (perhaps on eBay) and then buying pay-as-you-go SIMs is likely to be the cheaper option, especially if you don’t need a new phone every year.
When the network seems to be giving you something, it isn’t. It gives with one hand and takes away with the other. Study your pattern of usage and find the tariff that comes closest to it, not the other way around. Don’t buy a contract just because of some “feature” in it.
If you must buy a contract, remember that “churn” (customers leaving one network for another) is the bogeyman as far as the networks are concerned. Therefore, at least every year (or whenever your contract runs out) ring them up and ask for your PAC number. This is the authorization code you have to give the network you are moving to. You may be surprised at what they offer you to stay with them: much better than a measly upgrade. (I was offered a new phone free and cash in hand.)
The game is not to fall for the adverts but to do your homework and try to put one over on the network. Apart from saving money, it’s good fun!