[3GScottishUser]

From Mobile Today (23/02/2006):

Prepay users stuck with 3

3 is to glue its Sim cards into entry-level prepay handsets in a bid to hamper the box breakers that have diverted hundreds of thousands of 3 handsets from the UK market.

The move, starting this month, will see Sims glued into new ZTE handsets as well as new and refurbished Motorola C975s.

3 sales director Marc Allera (pictured) told Mobile that the move would guarantee that ‘the person buying [the phone] will be a genuine customer and won’t be selling it abroad’.

He said the move followed a test launch in selected 3 stores, which he described as successful. ‘We’ve done a trial pre-Christmas in our own stores, taken feedback from staff and customers, and we think it’s a practical solution.’

The Sims are being permanently bonded into handsets using epoxy resin. The process is being handled by handset logistics firm TRS.

‘We will be doing this on our entry-level handsets and those that aren’t secure,’ said Allera, adding that other handsets would be assessed on a ‘case-by-case’ basis.

Retailers Mobile has spoken to raised the issue of potential legal and competition concerns, however Allera dismissed these: ‘There is no legal issue.’

Ofcom’s director of communications, Matt Peacock, told Mobile that from a regulatory perspective the move was a physical extension of the handset or Sim-locking issue: ‘In November 2002 Oftel decided that improved consumer awareness of Sim locking is the best way to address the issue.’ The regulator defines Sim-locking as: ‘the practice where handsets are locked so they can only be used with the original provider of the service.’ This view effectively opened the way for operators to glue Sims into handsets, as long as customers are made aware of what they are being sold.

Allera told Mobile that he had a positive response from retailers to his Sim-sticking plans, although some raised concerns about customer service. One senior retailer described the move as potentially embarrassing: ‘How do you present this in a self-select environment? It’s not a great customer experience – we wouldn’t want to support that kind of proposition. I don’t want to have to explain what happens when a phone breaks at the point of sale.’

A top retail MD told Mobile: ‘I applaud opportunities to prevent box breaking, I’m just not sure this is the route. There are customer services issues.’

http://www.mobiletoday.co.uk/artman-test/publish/article_1215.shtml

[Hands0n]

Another sledgehammer approach that has far reaching consequences for the Customer (anyone remember that poor little old fella?) This goes totally against any principle of a removable/interchangeable USIM in the first place. Customer Service, Customer Experience are dismissed by Allera showing a cavalier disregard for these essentials.

Lets just say one of these handsets developed a fault - the Customer Experience in getting a new handset whilst retaining their original phone number will most likely be at best protracted, at worst "unpleasant". 3 do not need any more bad press, they are turning things around for the better all over the place - I personally think this is a bit of a shooting in the foot by 3.

Perhaps this is fine [I dont agree at all] for so-called entry-level PAYG handsets, but I would not be in the least bit inclined to puchase a Contract handset with a glued-in USIM.

[3GScottishUser]

Yes I agree and imagine most customer friendy retail outlets and vendors will refuse to have anything to do with this practice.

I have predicted this in the past as a possible solution to 'box breaking' but the truth is exactly as you have stated above the customer buying this 'thing' will have to suffer the inconvience of waiting for a protracted period for a repair or a replacement if things go wrong and at this price level they do more than any other.

High call charges and 'gluded' USIM's look certain to make ZTE and Motorola cheapies certain to fill forums with another tidal wave of compplaints from disgruntled customers.

Oh dear...... anothr poorly thought through quick fix solution that looks set to cost 3 dearly in terms of bad publicity.... again!!!

[Ben]

For uber-cheap prepay handsets then yes, sure, whatever. In the short term it's going to be good for the consumer and for the network, so the immediate drawbacks are very few and far between.

However, the longer term ramifications are more worrying. What if this practice spreads to handsets people actually care about, preventing customers from switching networks completely (though Three are currently managing this on Nokia's all by themselves simply through claiming they have no unlock codes)? What if it results in a clear shift to an emphasis on buying a combined service rather than a handset and a tariff.

Also, in a years time what happens to all those handsets that have glued in SIM cards and so can't be sold and reused by others? Once the SIM card is deactivated is it simply 'bye bye phone'?

This is a very anti-competitive move from a network that is already more closed than most. Far from being on the offensive, Three has recently taken to playing like it's under attack.

[3GScottishUser]

I can see problems from the start.

Lots of plumbers, joiners and brikkies getting one of those cheap video phones and when it goes faulty screaming the house down whilst they have to await a replacement or a repair!!!

Yikes.....

This might prove a real shoot themselves in the foot policy and might not catch on as the dealers wont be too keen to bear the brunt of the abuse that customers will undoubtedly resort to when informed of the 'service issues'.

I think this will haunt 3 UK for some time once it becomes implimented.

[maxspank]

I don't think this will take off, or at least I hope it doesn't, and if it does I hope the other network don't follow their lead. I'd hate it if every time I wanted to switch networks, I'd have to buy a new phone. As it stands now you buy a mobile phone, the costs are amounting on the network that you're on, you can pay for the phone to be unlocked and use your handset with another sim, with sims stuck to the phones you'd be stuck with it.

[3g-g]

As the customer is purchasing the handset outright where does this leave them in terms of ownership of the handset, it's yours once you pay the cash, what right to Three have to decide what you do with your equipment? Also, where does this leave the Mumbai script for coverage problems? "If you'd just like to turn the phone off, remove the SIM and give it a wipe with a dry cloth" Oh, that's right, I can't, you've glued it in! This'll drive people away from the cheap PAYG Three offerings in droves if any handsets deveolp faults as has been mentioned.

[Hands0n]

There is also the environmental issue. These handsets will be difficult, if not impossible, to refurbish and re-use without a whole lot of pressure put to bear on the Mobile Operator's CS teams. They will be having to re-assign Mobile Phone Numbers to SIM Numbers almost constantly, something that is normally done only on issue of a new SIM/USIM to tie the two together. Usually, the only other time there is such a re-assignment is if a new SIM/USIM is issued for any particular reason (i.e. migrating from a 2G SIM to a 3G USIM with the likes of Orange, T-Mobile, O2).

So long as this is restricted to so-called "entry level" handsets the policy is inconvenient to say the least. But if it is extended to higher order handsets such issues as recycling and re-use become of greater significance.

I would strongly resist any handset that had a glued-in SIM/USIM - I'd rather go to another network altogether. The research claimed to have been done by 3 [I contend] is flawed, what exactly were the questions asked of the Dealers and Customers?

[solo12002]

Oh well look on the bright side.

They have not yet started to glue the handsets to your hand, just to make sure you stay on Three! LOL:)

[getti]

Basic comments on this.... i think it sucks!. What a stupid idea from 3.

[3GScottishUser]

I think its only a matter of time before they do this with all thier handsets,

If it seems like a good solution on pre-pay why would'nt they?

Something else to check if you are considering going with 3.

[Hands0n]

I don't think they will be quite so zealous, although who knows for sure! It would be an act of complete folly in my opinion.

There is no excuse for such de-engineering and I'm certain that the Manufacturers will not be siding with them on this policy - so where does that leave (a) the Customer and (b) 3 itself in relation to Manufacturer Warranty? Are 3 really going to front the warranty? Because if they modify the handset that is exactly what they are going to have to do!

I cant help feeling that there is a muted chuckling going on in the other four Boardrooms.

Sometimes 3 can make themselves look totally amateurish, which is a great pity really - so much promise, so much done, so much to lose!