Wednesday, August 20, 2008

Supermarket price war goes mobile

Richard Wray guardian.co.uk, Wednesday August 20 2008 15:36 BST

The price war being waged between Britain's leading supermarkets has moved into the mobile phone market with Asda slashing its prices in half and rival Tesco hitting back that its offer is still the best in the market.

With the major mobile phone companies announcing a raft of price increases over the past few weeks, heaping further worry on the UK's embattled consumers, Asda is dropping the price of its pay-as-you-go mobile phone service.

The supermarket, owned by US giant Wal-Mart, actually uses the network of Vodafone to run its service and its new prices are less than half what its partner will charge.

From the start of September Asda Mobile customers will be charged just 8p a minute to make a call - down from 16p - while texts will cost 4p each. Vodafone, meanwhile, recently announced that its pre-pay rates will go up from September. The company, which has just under 11 million pre-pay users, is raising the cost of calling from 15p a minute to 20p. The company is also raising the cost of calling for any of its 7.5 million contract customers who exceed their monthly limits, from 12p a minute to 15p a minute.

Vodafone's move came after price increases from rivals T-Mobile and O2 earlier in the summer. T-Mobile raised its pre-paid minimum call charge from 10p to between 15p and 25p, depending on which tariff the customer uses.

Market leader O2, meanwhile, increased its minimum call charge for pay-as-you-go customers, who have not upgraded to a new tariff, from 10p to 20p. It has 11.5 million pre-pay customers. Orange, meanwhile, has kept its prices for callers on its Racoon and older pre-pay tariffs at 15p a minute, while the price of calling on its newer pre-pay tariffs - such as Camel - are 20p a minute.

Asda claims that its price cutting move will make it the UK's cheapest pay-as-you-go operator, with the new mobile phone service from home furnishings store Ikea just behind at 9p a minute for calls and 6p a text. Ikea uses the network of T-Mobile for its service.

"We are totally committed to giving our customers the lowest prices in Britain every day of the year," said Darren Blackhurst, Asda's trading director. "We are giving customers the UK's cheapest mobile call plan that's simple to understand and a tariff with no hidden extras."

The company, which has over 150,000 mobile users, reckons it can save the UK's estimated 45 million pay-as-you-go customers £2.38bn a year.

But Tesco Mobile, which already has 1.5 million customers, hit back that its service remains the best value. It charges 20p a minute for calls and 10p for texts but its customers can make half-price calls to their favourite five numbers - which account for about 80% of calls made by the average mobile user. Tesco Mobile customers also receive 150 free minutes or 500 free texts if they top up by £15 a month. Tesco Mobile uses O2's network to run its service.

Tuesday, August 19, 2008

3G Operator 3 UK Unveils the Skypephone S2

The next generation of internet-focussed mobile handsets has been unveiled with the launch of the latest model of 3's acclaimed 3 Skypephone, the 3 Skypephone S2.
Alongside free Skype calling and instant messaging, the new device brings internet services such as Facebook, Google and Windows Live Messenger to the front of the phone, making mobilised internet an easy-to-use and instantly accessible reality. Following the success of the original 3 Skypephone, the new 3 Skypephone S2 will be available for pre-order from 19th August, available to buy online from 27th August and in-store from 1st September.
New concept user-interfaceThe functionality of the 3 Skypephone S2 has been made instantly usable by the introduction of a revolutionary 'carousel' interface. The switcher key on the side of the handset enables you to quickly and intuitively move between applications from any screen on the phone, avoiding the need for the complex and fiddly menu systems that have made surfing the mobile internet difficult in the past.
The design of the 3 Skypephone S2 has also evolved since its predecessor. Now with elegant metal keys, a turned steel back and an overall premium finish. Technically the handset boasts an improved 2.2" QVGA screen, a 3.2 mega pixel camera, HSDPA capabilities and up to 4GB expandable memory.SkypeThe 3 Skypephone S2 packs a powerful punch. As with the first 3 Skypephone, Skype is fully integrated into the phone, allowing you to make Skype to Skype calls and send Skype instant messages to other Skype users anywhere in the world absolutely free, just as long as you are on any of 3's Pay Monthly price plans or your Pay As You Go credit with 3 is topped up. Your Skype contacts are fully integrated into your phonebook alongside all your regular contacts, and you won't be charged a penny extra to send instant messages to your Skype contacts.'Dongle' capabilitiesWith 500,000 Mobile Broadband dongles already sold by 3 in the UK, the demand for broadband on the move is unquestionable and the new 3 Skypephone S2 brings these same 'plug and play' capabilities to handsets. 3 Skypephone S2 has built in modem drivers so you can use the cable that comes in the box to plug it into your laptop and get you onto the internet. No need for a fixed-line or a Wi-Fi hotspot; the phone will use the 3 network to get you online with HSDPA broadband speeds.FacebookAs well as Skype, the 3 Skypephone S2 gives instant access to popular Internet services, including a pre-installed Facebook® application. Just click the icon on the home screen, sign in once and you can check your News Feed, see any unread messages or new friend requests and even update your status, all without clicking through to your full Facebook page.RSS FeedsThe 3 Skypephone S2 also allows you to keep up with your favourite blogs and news services by letting you track up to 30 RSS feeds at once. Whether you're keeping up with the national news or your favourite celebrity glossy, your favourite titles will all be accessible from the menu carousel which can be opened up on any screen. Internet serviceAll of the other core internet services that you've come to expect from a 3 handset are also built right into the 3 Skypephone S2. Never miss a message with easy access to free Windows Live Messenger and surf to your heart's content with Google search at your fingertips.Kevin Russell, Chief Executive of 3 UK, said: "The first 3 Skypephone was about building one of the most popular Internet services, Skype, into the heart of the device. The 3 Skypephone S2 builds on this approach and brings a host of other popular Internet services to the front of the device. "Using the Internet on your phone has sometimes been fiddly or complicated because of the limitations of traditional interfaces. With the 3 Skypephone S2 we've taken our long experience of putting the web onto mobiles and have used it to create a new concept in user interfaces. The switcher key gives you instant and intuitive access to all of the core services on the phone's menu carousel from every screen - making the mobile internet an easy to use reality.""Following the successful launch of the 3 Skypephone last year, the response and demand has been phenomenal" said Scott Durchslag, COO, Skype. "With this beautiful new addition to the 3 Skypephone range of mobile devices, both Skype and 3's customers will continue to reap the benefits of being able to make free Skype to Skype calls and send free Skype instant messages while on the move.""The new 3 Skypephone offers users an even richer mobile internet experience with fast broadband speeds. Skype on 3 is an innovative step in making Skype readily available whenever and wherever you go."The 3 Skypephone S2 is free on any of 3's Mix & Match tariffs and costs £69.99 on Pay As You Go, and by signing up to one of 3's internet add-ons from £2.50 (pricing info below) you'll be covered to browse the mobile internet.

ORANGE IN MOBILE BROADBAND PROMOTION

Orange in mobile broadband promotion

The number of people using mobile broadband dongles for internet access when out and about and at home is on the increase. Orange is trying to improve its customer numbers by launching a mobile broadband with laptop bundle for £25 a month.
The mobile broadband is supplied via a USB dongle and comes with 3GB of data allowance, plus 100 free texts. The charges for going over the allowance are high compared to ADSL services at 1.46 pence per MB (£15 per GB). If abroad every MB used is charged at £3 per MB in Europe and £6.46 per MB elsewhere. The laptop is an Asus Eee PC 900 with Windows XP and 16GB of solid state storage, weighing just 0.99kg. Orange value the laptop at £299.
The 24 month contract is lengthy, and while people may find that their Internet access easily fits in the 3GB a month currently, if switching from dial-up the tendency is for people to consume more audio and video eating into the allowance quickly. With the same mobile deal from Orange available for £15 a month, then under this new deal you are effectively paying £240 for the laptop, and a little bit of looking reveals other Eee computers with varying specifications from £160 to £300.
At this time we are aware of only one mobile broadband provider that does not charge extra if you go over the bundled data allowance, and that is T-Mobile who instead restrict usage once over the limit. If mobile broadband is to succeed and not be a flash in the pan, the various providers need to address the massive costs of going over the bundled data allowance, and make it very clear when using the device abroad what the costs of access are. At £3 per MB, just checking your email a couple of times while on holiday could easily set you back £10 to £20.

Monday, August 18, 2008

Vodafone raises call charges to combat lost revenue

From Times Online
August 18, 2008
Vodafone raises call charges to combat lost revenue
Lilly Peel

Vodafone today added to the increasing cost of living burdening Britons after it announced plans to raise its minimum call charges, leaving customers paying higher mobile phone bills.
The Newbury-based group, which has 18.4 million UK customers, is raising its minimum call charges by 25 per cent from September 1.
The cost of calls that exceed customers' monthly bundle, or tariff, of calls will go up from 12p a minute to 15p. Calling premium rate and non-geographic numbers will also become 25 per cent more expensive.
The move follows similar price increases by rivals O2 and T-Mobile, which last month doubled the minimum connection charge for many of their pay-as-you-go customers.
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Industry analysts say operators are slipping in price rises to combat lost revenue as the European Commission plans to cut termination rates — the price that mobile companies charge each other and fixed-line operators, such as BT, to connect calls to their networks.
Operators have also been forced to cut international roaming charges following pressure from Viviane Reding, the EU Telecoms Commissioner.
Vodafone is not changing its headline tariff rates and the increased charges apply to contract and pay-as-you-go customers.
A spokesman for Vodafone said the increases were the first for two years and were partly a response to “regulatory pressures”.
Last month, O2 raised the minimum call charge for pay-as-you-go customers, who have not upgraded to a new tariff, from 10p to 20p, while T-Mobile raised its prepaid minimum call charge from 10p to between 15p and 25p, depending on which tariff the customer takes.