Vodafone: Leading the pay-as-you-go competition?

Posted: 18 June 2009

With a growing number of networks battling it out to secure business during a time of economic uncertainty, a host of new pay-as-you-go options, extras and special offers have emerged that consumers may be interested in.

Last month, Vodafone announced it was revising its prepaid option to offer more ways for people to get the most out of a new mobile - without the need for a contract.

The carrier advised that from April 10th, there would be three ways to take advantage of its Vodafone Freedom Packs, involving unlimited text messaging and free voice calls at the weekend.

Pay-as-you-go customers were told a new plan would be made available that meant a £10 top-up would give them access to £50 worth of minutes. This was in addition to the Free Weekends and Text Unlimited option they already had open to them.

It was noted that within this option, Vodafone clients could use their credit or debit card to add either £10, £15 or £20 to their account and this would give them access to the offer for a 30-day period.

The Vodafone Freedom Packs would award 300 texts and 100 minutes for a £10 top up, 600 texts and 200 minutes for £20 and unlimited texts with 300 Minutes for those choosing to credit the handset with £30.

As part of the announcement, Vodafone drew attention to the range of handsets it currently had available. These included the Vodafone 533 and Vodafone 527 - available in a range of colours under the brand name of the Catwalk Collection - as well as the Samsung Armani, Samsung Steel and Sony Ericsson W595 Walkman phone.

In December last year, the firm revealed details of an IOU service that allowed pay-as-you go users the opportunity to add £2 of emergency calling credit to their phone without paying for it. The sum is simply taken back the next time the user tops up along with a 30 pence fee for making use of the service.

Commenting, the firm's head of product and pricing in the UK Ian Haynes said when you take into account the low cost of making a phone call on the Vodafone Simply price plan, "£2 can go a long way".

Since then - in fact, just last week - the network announced it would be abolishing all roaming charges in the summer and that this would mean cheaper international calls for all of its customers - including those on a prepaid option.

Starting from June 1st and running until the end of August, Vodafonepay-as-you-go customers can make voice calls as well as send text and picture messages from more than 35 different countries at exactly the same price as they would if they were doing so from the UK - making the packages ideal for those jetting off on holiday and hoping to send pictures of their sun-drenched destination to the folks back home.

The carrier also announced these customers could take advantage of the offer by signing up for a Vodafone Passport – a subscription it made available free to those texting "Passport" to 2345.

Ian Shepherd, consumer director for Vodafone UK, said: "These are two great value offers for our customers this summer. With our Vodafone Passport promotion you can sit on the beach with your phone switched on knowing you can take and make a call just as you would if you were in your back garden.
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He added it was "good news for the millions of UK pay-as-you-go customers as they can now make calls to family and friends around the world from just five pence".

Working in a similar way to Vodafone's Freedom Packs, the Flext tariff is something that T Mobile claims has been particularly popular with its customers and earlier this year the carrier decided it was about time to up its game and offer a new pricing feature to compete with its rivals.

In March, the network announced the Flext package had been "enhanced to provide a comprehensive package of minutes, texts, MMS, calls and texts to selected international numbers, voicemail calls to selected 08 numbers".

For a flat monthly top-up amount, the network offers a credit allowance that can be used up over the period and now this includes international calling, as the group revealed it had added 50 of the most popular international calling destinations to the package, as well as calls to a range of popular 08 numbers, unlimited mobile internet access, access to voice mail and a free weekly text alert that helps the user to keep track of how their balance stands.

At the time, T Mobile's head of propositions Jon Cowan said: "Our new Flext offer underlines our commitment to providing unbeatable value for money and giving our customers what they want."

"Flext has now been improved to provide a unique package of minutes, texts and other benefits, so those battling to save money during these economically uncertain times can ensure they get a monthly package perfectly suited to their lifestyle."

In another bold move this year, T Mobile incorporated the Google Android-powered G1 handset into the Flext offer as well as LG's flagship multimedia device, the KM900 Arena.

Fans of the South Korean manufacturer's line of mobile phones were also advised in February that a special white edition of the LG Cookie would be coming exclusively to the O2 network - and the carrier decided the handset would feature as part of its own pay-as-you-go offerings.

With a price tag of £99.99, buyers could expect a three-inch touchscreen with Flash-powered user interface, an accelerometer sensor, handwriting recognition, vibrating alert with polyphonic and mp3 ringtones, an internal 48 MB memory - expandable to 16 GB with a microSD card - Bluetooth v2.1, 3.15-megapixel camera and stereo FM radio with RDS technology.

Jeremy Newing, head of marketing at LG Mobile in the UK, said: "Touchscreens continue to be a key focus for LG this year and by offering consumers more choice we are continuing to bring affordable yet feature packed handsets to the masses."


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