[getti]

T-Mobile slashes value in Flext tariffs
11:37AM Mon 6 August 2007


T-Mobile has slashed the inclusive value of its Flext tariffs for new customers, dropping the combined value of texts and minutes offered by as much as £45.

The network has also stopped including voicemail in its Flext value package, and has introduced a minimum call charge of one minute for all Flext tariffs. T-Mobile said the move was 'part of a price review', but that the 'tariffs were still good value'.

The operator has made the changes to its post-pay 12-month tariffs proposition, which come into effect on 15 August.

On the Flext £25 12-month tariff, the £40 of inclusive value offered in July has been dropped to £30. On Flext's £35 contract, inclusive value has fallen from £120 to £90. Flext's £50 contract now includes £125 worth of value, down from £170.

There is now a £30 gap between the value on the Flext £25 12-month contract and Flext £25 18-month contract. The Flext £30 18-month tariff comes with £90 of texts and minutes, the same as with the Flext 35 12-month contract.

Dealers' commission for the new tariffs remains the same. In July, T-Mobile took off £35 commission across all Flext tariffs.

T-Mobile was expected to be gearing up for the second half of the year with retention of Flext customers with richer deals. But it is a sign that the company is pushing for higher-value contract customers and going for revenue growth. Distributors said the network was trying to move more customers on to 18-month contracts and was also pushing prepay for a more direct payback.

A spokesman said: 'We have taken some value out. We led the industry on value and probably still do. But we are increasing the gap between the 12 and 18-month Flext tariffs. With free weekend calls, they are still hugely competitive. We'd prefer to have people on 18-month contracts, but the changes are not prohibitive for 12 months.'

Oh dear T-Mobile..... a step backwards for many im sure.

[Hands0n]

I am at first glance disappointed, but taking into consideration their Free Evenings and Weekends - which puts some value back into the plan - things are not quite so dreary.

I would hate to see T-Mobile go down the road of others - making their plans so hard to understand.

[3GScottishUser]

I doubt if this will impact significantly as most customers choose the 18 month deals to get the best handset subsidies etc.

All of the operators including 3 weight their 12 month contracts to make them unattractive compared with the 18 month deals, which are easier for them to make a decent return on.

Flext is still a competitive tariff and with free weekends and evenings many will be happy that one fixed charge can cover all their voice, text and photo messaging requirements.

[Ben]

At first glance I was a bit disappointed as well, but the changes aren't too bad considering most people get sucked in to (horiffic IMHO) 18 month contracts for their mobile phones these days. The free evenings and weekends is all good.

The move does reflect one of two things in T-Mobile though. They regularly chop-and-change comissions and are always fiddling with their tariffs too, especially direct. Either they're showing signs of instability and an inability to control their budget and additions competently, or they're showing an exceptional regard for spend and meeting targets and constantly adjusting the sales model to obtain the best results.

I guess only their financials will indicate which is true.

[3GScottishUser]

T-Mobile are probably one of the most realistic networks when it comes to tweaking thier deals to maximise their profit potential.

Flext is still competitive especially on 18 month deals, which most opt for anyway and thier pre-pay is also one of the cheapest available.

Having attracted 1 million new Flext customers in a year it's no surprise that they will now try to extract some additional revenue.

Happily none of the changes affect existing customers and anyone who wants to renew a contract can review their options.