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On May Day, T-Mobile will change UK Pay-As-You-Go

New plans cut the cost of pre-pay by up to half

Thursday, 27 April 2006, London:  T-Mobile today announces a new deal for the two thirds of UK mobile customers who pay-as-they-go rather than take out contract subscriptions.  It could cut the average cost of pre-pay calls and texts by between a quarter and one half; and it could increase pre-pay call and text volumes proportionately (see notes below).

Pre-pay provides an easy way to pick up a mobile phone, connect to a network and pay up-front for usage.  It provides total budget control and is immensely popular. Two-thirds of Britain’s 68 million mobile customers are pre-pay. 

Pre-pay however typically costs significantly more to use than contract subscriptions.  This is one of the key reasons why average pre-pay customer usage is much lower. 

T-Mobile believes that the cost of pre-pay is too much; that tariffs are too complex; and that a new value map is needed in the UK pre-pay market.

Following its success in changing the UK contract market with its Flext, U-Fix and Relax plans, T-Mobile is now changing the UK pre-pay market.  On May Day, T-Mobile is launching a new range of only three simple Pay-As-You-Go plans, radically altering value and recognising the different needs of different pre-pay customers. 

T-Mobile New Plans : 

  •  ‘Everyone’ – A great flat rate plan – 12p per minute calls, anytime to any

UK network

  • ‘Mates Rates’ – the best same network plan in the market – 5p per minute calls and 5p

 texts to mates on T-Mobile

  • ‘Text Appeal’ – the best value all UK network text rate in the market – 3p per text to any

UK network 

T-Mobile is also encouraging customer loyalty and providing high flexibility :

  • 20% credit to customers who top up £20 or more in a month – available on all plans
  • Change plans at any time

Jim Hyde, Managing Director of T-Mobile UK said:

“Mobile is great, but it has to be affordable. Just as we have shaken up the contract market, today we’re shaking up the pre-pay market.  It’s good for customers and it’s good for us. It makes common sense and it makes economic sense to enable customers to use their phones without worrying about cost.”

Phil Chapman, Chief Marketing Officer of T-Mobile UK said:

“Our new Pay-As-You-Go plans don’t just change pre-pay value.  They recognise the different ways customers use their phones. And they give customers the freedom to switch with no penalty if they change the way they use their phones.”

Average Pay-As-You-Go customers in the UK spend around £132 per annum, compared to around £482 per annum for contract customers (see notes below). 

Today’s new Pay-As-You-Go plans follow in the footsteps of other recent initiatives that have redefined the UK mobile market such as Flext, launched in March this year, Web’n’walk launched October 2005 for providing web browsing, Mates Rates and U-Fix in 2005.

 

Ends

Contacts

T-Mobile Press Office                                            +44 (0) 7017 150 150

Robin O’Kelly                                     T- Mobile:       +44 (0) 7786 702 526

Laura Moxham                                   T- mobile:       +44 (0) 7932 078 816

email:  laura.moxham@t-mobile.co.uk       

Brands2Life                                                   Tel :                 +44 (0) 20 7592 1200

Notes to editors:

Total UK mobile market  (Source: T-Mobile market research)

As of end 2005, based on Network Operators’ published information :

  • There were some 67.5 million mobile customers (issued SIM cards)

  • Of these, some 66% (c. 44.5 million) were Pay-As-You-Go and some 34% (c. 23 million) were subscription contract customers (SIMs).

  • Average Pay-As-You-Go customer spend was around £132 a year. Total Pay-As-You-Go spend was £5.9 billion

  • Average contract customer spend was around £482 p.a. Total contract spend was around £11.1billion.

Comparative of Pay-As-You-Go rates

There can be no precise measurement of the average savings between different operators’ Pay-As-You-Go rates, because of the range and complexity of the different tariffs and the changing patterns of customer usage of their mobile phones month by month.

The tables below compare T-Mobile UK’s new Pay-As-You-Go rates with the core Pay-As-You-Go rates of the other four UK Network Operators and the three main Virtual Network Operators[1].

Particularly compared to other network operators, T-Mobile’s new rates may offer up to 50% savings. 

As at 27.04.06

Tariff Name

Calls

T-Mobile

Everyone

T-Mobile

Mates Rates

T-Mobile

Text Appeal

Orange

same rates 24/7

02

Talkalot/more

Same network

12p/min

5p/min

20p/min

15p/min

25p/min for first 3mins/day

5p/min thereafter

Local and National numbers

20p/min

Other UK networks

40p/min

40p/min

35p/min

40p/min

Text

 

 

 

 

 

Same network

10p

5p

3p

10p

10p

Other UK networks

10p

Voicemail

10p/min

10p/min

10p/min

10p/min

10p/min

 

As at 27.04.06

Tariff Name

Calls

Vodafone

Smartplus

3

WePay

Virgin Mobile

Pay As You Go

Fresh Mobile

Tesco Mobile

Value Tariff

Same network

30p/min peak

5p/min off-peak

10p/min

15p/min for 1st 5min

5p/min thereafter

15p/min

15p/min

Local and National numbers

15p/min

Other UK networks

35p/min

30p/min

35p

Text

 

 

 

 

 

Same network

12p

10p

3p

5p

5p

Other UK networks

10p

Voicemail

30p/min peak

5p/min off-peak

10p/min

FREE

15p/min

10p/min

T-Mobile’s new Pay-As-You-Go Plans 

‘Everyone’ – Designed for everyone, to call everyone

  • Ideal for those who want to call and text any UK network, local or national number

  • 12p flat rate to all UK networks, local and national numbers

  • Texts 10p each to all UK networks

  • Voicemail at 10p per minute

‘Mates Rates’ – Made for mates, to call mates on T-Mobile

  • 5p per minute to call T-Mobile mates and 5p to text them

  • 20p per minute calls to local and national numbers, 40p per minute to other networks

  • 10p per minute texts to other networks

  • Voicemail at 10p per minute

‘Text Appeal’ – Designed for those that can’t get enough of texting

  • 3p flat rate for texts to all UK networks

  • 20p per minute to call T-Mobile, local and national numbers

  • 40p per minute to call other UK networks

  • Voicemail at 10p per minute

 

About T-Mobile
T-Mobile International is one of the world’s leading mobile communications companies.

Around 87 million mobile customers are today served in nine T-Mobile markets with a common technology platform based on GSM, the world’s most successful digital wireless standard. T-Mobile is the only mobile communications provider with a seamless transatlantic service.

For more information about T-Mobile UK, please visit www.t-mobile.co.uk

[1] The figures are core competitor pre-pay tariffs. They do not include special offers and promotional overlays.

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