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View Full Version : Vodafone Targets 3 - Gloves now off....



3GScottishUser
5th September 2005, 05:41 PM
From Mobile Today (05/09/2005):

Vodafone has identified 3 as its key rival in its plans for an aggressive acquisition drive before Christmas.

It is looking to match 3’s deals by putting bigger subsidies and commissions into 3G handsets and even offering customers a bigger cash bounty to churn off 3. Vodafone’s 350 stores have been offering £100 to customers (invariably from 3) who trade in their old 3G phones when they sign up to a Vodafone 3G contract. Customers who swap a 2G handset have £50 credited to their account.

Vodafone’s ‘big 3G deal’ bears an uncanny resemblance to 3’s tariffs, leaving little to choose between the two propositions. Vodafone is punting the Sony Ericsson V600i free to customers on the deal, the same handset that is currently taking top billing on 3’s portfolio.

The move comes ahead of an anticipated tariff shake-up from 3 this month, which is expected to raise its own game.

Vodafone unveiled a new student deal today (Thursday), with the intention of taking on 3’s own recently launched campus offering.

NUS members who sign up to a Vodafone 3G contract ranging from Anytime 125 to Anytime 3,000 are being baited with a free Samsung Z500 as well as unlimited free texts and picture messages.

One Vodafone store salesman said: ‘We’re trying to take 3’s customers. We’re emphasising that our call centres speak English [as a first language] and our better coverage. And now the value of 3’s calls and texts are only a couple of quid cheaper. Our handsets are better too.’

Independent retailers said Vodafone was pushing its 3G handsets and tariffs with the aid of a hefty uplift in commissions. ‘[Selling] the 500-minutes tariff gives us £350 commission,’ said one dealer. He added that a comparable tariff on Vodafone previously paid £210.

Operators and retailers said Vodafone was looking to exploit the vulnerable situation of 3 as the large numbers of customers who signed up last year come to the end of their contracts. A market analyst at one of Vodafone’s rivals said: ‘Vodafone is going to go all guns blazing on 3G now.’

Retailers said Vodafone had a two-tier subsidy strategy, offering preferential commissions for 3G handsets over 2G handsets.

A spokeswoman for Vodafone said: ‘3G is important to us; that is reflected in the offers we do.’

How the tariffs stack up
The main offer
• 3: £17.50 per month for six months; £35 per month for 12 months.
400 minutes, 250 texts, 25 video minutes, 25 photo or video messages, £5 credit to spend on content.
• Vodafone: £20 per month for six months; £40 for 12 months.
500 minutes, 100 texts, 50 minutes of video calls, free evening and weekend video-calls between June and September, free content for the life of the contract, stop the clock offer.

The student deal
• 3: £20 per month. 100 minutes of voice calls and 1,000 text messages.
• Vodafone: Unlimited texts and picture messages on six tariffs ranging from Anytime 125 (£25 a month) to Anytime 3,000 (£99).

http://www.mobiletoday.co.uk/artman-test/publish/article_687.shtml

3g-g
5th September 2005, 11:34 PM
It's definately the start of things to come, I'd expect to see Orange follow suit with similar or better offers... and I wouldn't put anything past Three not to come back with something to gazump their competition aswell!

I wonder though as Three have slowly started to make things a little more expensive we won't see as big a price clash? Could all the operators just get into a nice cosy corner where no-one is cheap anymore?

3GScottishUser
5th September 2005, 11:42 PM
I doubt it. There is a wounded animal out there and when blood has been spilled and something is weak and limping the stronger species move in for the kill.

Happens both in nature and business and the vulctures have been circling 3 for a while just waiting on the right time to feast.

pje1979
7th September 2005, 05:58 PM
The only problem being that Vodafone have virtually no 3G coverage where as 3's is exstensive.

3GScottishUser
7th September 2005, 06:06 PM
The only problem being that Vodafone have virtually no 3G coverage where as 3's is exstensive.

Not really true..... Vodafone now have welll over 60% UK Population coverage and seamless switching onto their 99% GSM coverage. Vodafone have most major cities covered now with a good density of stable 3G signal. They also have more 3G coverage in Europe than any other mobile network.

gorilla
8th September 2005, 09:37 AM
At least we are now starting to see an increase in competition in the 3g sector. If 3 allow net access soon, then next year should be exciting times for all 3g users looking to renew their contract. I expect greater competition in the PAYG market as well.