Hands0n
24th September 2011, 11:14 AM
I am not one to particularly believe commentators, but there is much speculation that the UK, if not the world, is about to face a double-dip recession any old time now. Even U.K. Chancellor of the Exchequer George Osborne has publicly predicted that the Euro has six weeks to survive (WSJ: http://online.wsj.com/article/BT-CO-20110923-708987.html ). So what on earth are Vodafone thinking? Is this a last minute dash for the contents of our wallets?
Millions of Vodafone customers will see their monthly bills rise next month, and there are big price hikes on the way for people who go over their data allowance or make a lot of calls.
Internet forums have been buzzing since it emerged that Vodafone, with nearly 10 million UK customers on monthly contracts, is "simplifying" bills by rounding them up, and is also upping the cost of some "out-of-bundle" calls (those outside of your monthly allowance) by 67%. However, it is cutting the price of other calls.
The changes mean customers who surf the web a lot on their phone, and regularly exceed their allowance, could end up paying twice as much as before.
...
...
...
From 11 October, everyone who took out a contract before February this year will have their bill rounded up to the nearest 50p. So if you pay £25.54 or £30.65 each month, these will rise to £26 and £31 respectively.
...
...
...
The company is also "simplifying" the call costs that people pay once they have used their inclusive monthly allowance of minutes, texts and data. These changes affect pay-monthly customers who joined before June 2011.
From 11 October, calls to any UK mobile or landline number (except 0800, 0845, 0870, and numbers starting with 090) or UK voicemail will be charged at a flat rate of 35p per minute.
This will be a blow to many existing customers, who pay 21p a minute for calls to any Vodafone UK mobile, standard UK landline, 0844 numbers and UK voicemail. However, calls to other UK mobile networks and 0871 numbers typically cost 36p at the moment, so these will be slightly cheaper.
...
...
...
The company is also "simplifying" the call costs that people pay once they have used their inclusive monthly allowance of minutes, texts and data. These changes affect pay-monthly customers who joined before June 2011.
From 11 October, calls to any UK mobile or landline number (except 0800, 0845, 0870, and numbers starting with 090) or UK voicemail will be charged at a flat rate of 35p per minute.
This will be a blow to many existing customers, who pay 21p a minute for calls to any Vodafone UK mobile, standard UK landline, 0844 numbers and UK voicemail. However, calls to other UK mobile networks and 0871 numbers typically cost 36p at the moment, so these will be slightly cheaper.
...
Read the full Guardian article here --> http://bit.ly/pKiRzZ
Getting out?
Vodafone's contracts are fairly watertight these days, entirely weighted against the consumer, and getting out citing such increases such as these has become more difficult over time, if not actually impossible.
The company said if a customer believed the changes could still result in an increase of more than 10% to their total monthly bill, "you may be able to change your contract as per our terms and conditions".
The key is the onus on the customer to prove, or at least be able to reasonably predict, that 10% or greater increase in their monthly bill. Hard to do especially given the deadline to do so, which is 11 October 2011. Miss that date and you have tacitly accepted the increases, lock, stock and barrel.
Is it all bad news?
It really isn't all gloom and doom, especially for those who remain within their contracted allowances.
So, firstly, everyone's bill will be rounded up to the nearest 50p. "So if you pay £25.54 or £30.65 each month, these will rise to £26 and £31 respectively." which is rather naughty given how the rise has been presented. That is, to simply the bill for the customer. I don't know about everyone else but I am completely capable of handling my bills in Pounds and Pence. So I do think that the reasoning is completely specious.
But the worst news is for those who go out of bundle for minutes, texts and data, worse so for data as the cost of doing so has effectively doubled. This, while sounding dreadful, however, is a carrot and stick approach at getting people to purchase the appropriate tariff for their needs. Unfortunately, so inflexible is the terms and conditions of the contract that there is zero flexibility for the customer should their needs change. And so they could end up paying more in any case for something they will not use.
What to do?
First advice is not to panic. Already there is much indignant protest and people stating that they'll pay up and cancel with Vodafone. That could be expensive for no particular good reason at all. Why give Vodafone n-months money for service that you are going to chuck in the bin while going to another provider? Give me the money instead, I'll take it off your hands.
No, I think that a reasoned approach is essential. Consider tweaking the tariff or purchasing add on features. Take a moment to work out whether the nett cost of doing so is cheaper or more expensive than paying off and walking away. Essentially, make Vodafone work for their money.
Epilogue
We are going to see a lot more of this kind of activity across all of our utility providers. They do, after all, have a firm hold over us and will make a land grab for our money while they can. Because if/when the recession does hit, or worse still just lingers on endlessly, the public confidence will erode and that will be apparent in "the street". Buyers will rein in spending to the essentials; food, water, power. This is already being seen in the high street.
Mobile telephony is a luxury that can be dispensed with - mobile data even more so. It has become cultural in the UK to be untethered from the land line, but that is only because it became affordable to do so. If the operators change the [financial] game then the buying public will respond in kind.
So the likes of Vodafone will make hay while the sun shines, because later they will face significant difficulties. It is a dangerous game that they play.
Millions of Vodafone customers will see their monthly bills rise next month, and there are big price hikes on the way for people who go over their data allowance or make a lot of calls.
Internet forums have been buzzing since it emerged that Vodafone, with nearly 10 million UK customers on monthly contracts, is "simplifying" bills by rounding them up, and is also upping the cost of some "out-of-bundle" calls (those outside of your monthly allowance) by 67%. However, it is cutting the price of other calls.
The changes mean customers who surf the web a lot on their phone, and regularly exceed their allowance, could end up paying twice as much as before.
...
...
...
From 11 October, everyone who took out a contract before February this year will have their bill rounded up to the nearest 50p. So if you pay £25.54 or £30.65 each month, these will rise to £26 and £31 respectively.
...
...
...
The company is also "simplifying" the call costs that people pay once they have used their inclusive monthly allowance of minutes, texts and data. These changes affect pay-monthly customers who joined before June 2011.
From 11 October, calls to any UK mobile or landline number (except 0800, 0845, 0870, and numbers starting with 090) or UK voicemail will be charged at a flat rate of 35p per minute.
This will be a blow to many existing customers, who pay 21p a minute for calls to any Vodafone UK mobile, standard UK landline, 0844 numbers and UK voicemail. However, calls to other UK mobile networks and 0871 numbers typically cost 36p at the moment, so these will be slightly cheaper.
...
...
...
The company is also "simplifying" the call costs that people pay once they have used their inclusive monthly allowance of minutes, texts and data. These changes affect pay-monthly customers who joined before June 2011.
From 11 October, calls to any UK mobile or landline number (except 0800, 0845, 0870, and numbers starting with 090) or UK voicemail will be charged at a flat rate of 35p per minute.
This will be a blow to many existing customers, who pay 21p a minute for calls to any Vodafone UK mobile, standard UK landline, 0844 numbers and UK voicemail. However, calls to other UK mobile networks and 0871 numbers typically cost 36p at the moment, so these will be slightly cheaper.
...
Read the full Guardian article here --> http://bit.ly/pKiRzZ
Getting out?
Vodafone's contracts are fairly watertight these days, entirely weighted against the consumer, and getting out citing such increases such as these has become more difficult over time, if not actually impossible.
The company said if a customer believed the changes could still result in an increase of more than 10% to their total monthly bill, "you may be able to change your contract as per our terms and conditions".
The key is the onus on the customer to prove, or at least be able to reasonably predict, that 10% or greater increase in their monthly bill. Hard to do especially given the deadline to do so, which is 11 October 2011. Miss that date and you have tacitly accepted the increases, lock, stock and barrel.
Is it all bad news?
It really isn't all gloom and doom, especially for those who remain within their contracted allowances.
So, firstly, everyone's bill will be rounded up to the nearest 50p. "So if you pay £25.54 or £30.65 each month, these will rise to £26 and £31 respectively." which is rather naughty given how the rise has been presented. That is, to simply the bill for the customer. I don't know about everyone else but I am completely capable of handling my bills in Pounds and Pence. So I do think that the reasoning is completely specious.
But the worst news is for those who go out of bundle for minutes, texts and data, worse so for data as the cost of doing so has effectively doubled. This, while sounding dreadful, however, is a carrot and stick approach at getting people to purchase the appropriate tariff for their needs. Unfortunately, so inflexible is the terms and conditions of the contract that there is zero flexibility for the customer should their needs change. And so they could end up paying more in any case for something they will not use.
What to do?
First advice is not to panic. Already there is much indignant protest and people stating that they'll pay up and cancel with Vodafone. That could be expensive for no particular good reason at all. Why give Vodafone n-months money for service that you are going to chuck in the bin while going to another provider? Give me the money instead, I'll take it off your hands.
No, I think that a reasoned approach is essential. Consider tweaking the tariff or purchasing add on features. Take a moment to work out whether the nett cost of doing so is cheaper or more expensive than paying off and walking away. Essentially, make Vodafone work for their money.
Epilogue
We are going to see a lot more of this kind of activity across all of our utility providers. They do, after all, have a firm hold over us and will make a land grab for our money while they can. Because if/when the recession does hit, or worse still just lingers on endlessly, the public confidence will erode and that will be apparent in "the street". Buyers will rein in spending to the essentials; food, water, power. This is already being seen in the high street.
Mobile telephony is a luxury that can be dispensed with - mobile data even more so. It has become cultural in the UK to be untethered from the land line, but that is only because it became affordable to do so. If the operators change the [financial] game then the buying public will respond in kind.
So the likes of Vodafone will make hay while the sun shines, because later they will face significant difficulties. It is a dangerous game that they play.