| 6th Febuary 2006 - In a move to cut tariff confusion, do
away with bill shock and introduce new standards of value and
flexibility for mobile customers, T-Mobile UK launches "Flext",
a unique new way of using mobile. These initiatives are central
to the way T-Mobile intends to grow its market share and raise
customer usage and loyalty, following its decision to increase
investment in its UK business to GBP 1.5 billion over this year
and next.
The moves follow the record customer growth achieved by T-Mobile
in the fourth quarter of 2005 and are designed to build on
this momentum.
Flext introduces a new way of charging for mobile, attacking
the rigidity of mobile tariffs and introducing new standards
of contract value, and is designed to cut bill shock. Flext
denominates value in terms of £s spent per month, not
fixed numbers of minutes of texts, and it lets customers spend
their money on whatever mix of minutes, texts, voicemail and
picture messaging they want. (Typically, in the industry,
voicemail and picture messages are charged extra to monthly
contracts).
With Flext, T-Mobile is launching completely new standards
of value.
It delivers call rates which can be as low as 3.9p per minute
and texts as low as 1.94p each. This compares with 15p per
minute and 5p per text for the cheapest "no frills",
pre-pay service currently in the market and with typical high
value contract call rates ranging from around 10p per minute
and per text and upwards. Flext bases its value by taking
highly market competitive rates and then substantially improving
on these rates within the monthly bundle.
For example, "Flext 35" costs GBP 35 per month
and gives 900 minutes of talk time or 1,800 texts or any combination
of these. Voicemail and picture messaging are charged at 10p
per minute and 20p each respectively.
In addition, Flext will automatically send customers a text
message each week, at no cost, to tell them their running
balance of remaining monthly minutes, texts and other credit.
Every 6 months, Flext customers will also receive an automatic
"BestPlan" check-up to see if they would be better
off by moving up or down the Flext tariff scale - which runs
from GBP 20 to GBP 75 per month.
Flext contracts are for 18 months.
Flext 20 and 35 are launched today exclusively through T-Mobile’s
own stores and direct sales channels. From March 1st, the
full range of Flext tariffs will be launched through independent
dealers as well as T-Mobile’s channels.
A substantial double digit million advertising and promotional
programme for Flext starts in March.
Jim Hyde, Managing Director of T-Mobile UK, said:
"We intend to grow our market share, and simple fair
value for our customers is at the heart of this.
“Mobile costs are too high; tariffs are too complicated
and rigid; and customers often feel ripped-off when their
actual bills frequently exceed what they think they’d
signed-up for. This is no way to encourage loyalty and usage.
“The way customers use our services varies month by
month, and often unpredictably so. Charging set amounts of
minutes and texts therefore doesn’t work for many customers.
“With Flext, we’re introducing a brand new concept.
Totally flexible mobile usage for voice, texts, picture messages
and voicemail, all with exceptional value. We’ve significantly
increased the number of minutes and texts our customers can
use at the most relevant price points and we’re coupling
this with weekly up-dates, so customers know their usage,
as well as our ‘BestPlan’ promise."
Phil Chapman, Marketing Director of T- Mobile UK, said:
“Mobile has to think through customers’ minds and
answer their needs, not do what happens to be traditional
and suits the mobile operators. Having customers feeling confused
and facing bill shock is not a recipe for success.
“Flext listens to what our customers want and delivers
flexibility, value and an inclusive mix of services, which
should meet practically everyone’s needs - without their
having to exceed their monthly contract payment.”
{LINK 1 More information on T-Mobile UK}
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