Phone Credit

darrenw5094

I was just wondering why O2 have cut their bodit from €100 down to €40 for new phones?? Customers are now losing out on €60 free credit.:mad:

drunkmonkey

That €100 was not straight forward either.....it was more like €40 if you read the T&C's

No idea why they do it, I presume 02 customers will still by 02 phones regardless.....

flodis79

Used to be 90euro regardless of top ups. Then 140euro if you topped up every month. Now 40euro if you top up. Credit crunch.:)

Davy

another reason with offers like freetexts it has to be bought topup

Random

It's all about money saving and customer loyalty (perhaps forced loyalty).

If you're getting a tenner a month for not even topping up then the network is making zero money. They've subsidized the phone and the credit and are pretty much making nothing.

If you're getting a tenner a month for topping up a tenner then they're getting at least a fiver from you (assuming profits at 50% which is a random guess / stab in the dark, but I think you get the point).

Money money money. The world of business sucks but so be it.

whisht

darrenw5094 wrote: »

I was just wondering why O2 have cut their bodit from ?100 down to ?40 for new phones?? Customers are now losing out on ?60 free credit.:mad:

Sign of the times i'm afraid. I think vodafone are down to 20 on their new phones and meteor also on most of theirs

krudler

First off its not free credit, its bonus credit, and the phone you paid 60 quid or whatever for is hugely subsidised at a cost to the network, why does everyone think a phone only costs what you pay for it in the shop? the mobile industry is pretty unique in that the companies sell their phones at a loss all the time, and the "oh its all about the money" argument is ludicrous, of course its about money, if the network made no money you wouldnt be able to make phone calls in the first place

whisht

Some linkage

O2 call credit
Meteor call credit
Vodafone call credit
3 call credit
Tesco call credit

mathew

darrenw5094 wrote: »

I was just wondering why O2 have cut their bodit from €100 down to €40 for new phones?? Customers are now losing out on €60 free credit.:mad:

Recession????

miceal

mathew wrote: »

Recession????

People taking the p*ss maybe?????

veritable

Random wrote: »

It's all about money saving and customer loyalty (perhaps forced loyalty).

If you're getting a tenner a month for not even topping up then the network is making zero money. They've subsidized the phone and the credit and are pretty much making nothing.

If you're getting a tenner a month for topping up a tenner then they're getting at least a fiver from you (assuming profits at 50% which is a random guess / stab in the dark, but I think you get the point).

Money money money. The world of business sucks but so be it.

50%? Rubbish. it's more like 80% markup. The phone companies aren't going to suffer at all during the recession. People will still text and talk as much. The mobile phone companies make huge amounts of money, especially off the Irish, i.e. based on phone call and text charge figures per country.

Tarakiwa

Recession!
Credit crunch!!

Simple as that I would say!

Gillo

veritable wrote: »

50%? Rubbish. it's more like 80% markup. The phone companies aren't going to suffer at all during the recession. People will still text and talk as much. The mobile phone companies make huge amounts of money, especially off the Irish, i.e. based on phone call and text charge figures per country.

First of all theres a pretty big difference between mark-up and profit, you learn that doing Junior Cert business, second the revenue per customer is declining at the moment for networks.

In answer to the OP, same as every company it's a case of belt tightening.