I have been with O2 for 20 years or so (or its various incarnations).
Phone upgrade time but O2 cannot come close to matching the deal that web companies are offering, even though that is on O2 contracts. I assume that O2 are also paying them commission for this.
So is this just a case, like the car insurance, that they assume that majority of customers will just auto renew / upgrade and not look at other prices? OK they may be getting the business anyway but I am also seriously looking at EE. Last year the missus moved from O2 to EE due to O2 not being able to come up with a competitive deal anywhere near the EE one.
Or am I missing something here? Is there an element of the car broker business model that the phone brokers will guarantee to sign up x amount of new customers?
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I assumed they would offer me something to stay, some kind of incentive, but when I asked for my PAC code, they asked why, "because i can get a better deal" says I, "Goodbye" says they.
They are not out to keep customers, Telephonica want rid of them, which is why they have been sold to 3.
Once we are limited to three BT (ee), Hutchinson (3 /O2), and Vodaphone expect prices to rise.
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Same here Zero. Been with them man and boy since BT Cellnet days, must have been from around 1997. Bye Bye. As I have said before 3 is much better, it even has (Somewhere on the Asian Sub-Continent) call takers that can speak proper English.
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Company 1 (e.g. O2)
Line cost £10
Company overhead / cost of sales £20
Customer support £10
Profit £10
£50
Company 2 (Shed in Slough)
Line cost £15 (£10 cost + £5 GP for O2)
Company Overhead / cost of sales £2
Customer support £5
Profit £10
£32
O2 could only beat Company 2 by losing a chunk of money direct, whereas if they let Company 2 sell it for them they'll receive some level of money.
So there is frequently no chance of them being able to meet the price.
However, many will prefer to go to O2 direct and will pay the higher price anyway as well as the ones you mention that don't check and let it run.
Then, as Zero says, there is how much they want to; what type of investment or customer acquisition strategy they have; what is the future company strategy etc. etc.
Last edited by: No FM2R on Tue 5 May 15 at 20:57
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Interesting answers so in short, O2 as a company really aren't wanting customers!!
At least that backs up what they are appearing to be doing.
Over to EE for me I think then........ selected areas in Glasgow where I have shops have limited or no Vodafone coverage. Must check out 3, they were historically very poor in Scotland but may have improved.
Mind you, don't think any of them will have coverage in the Outer Hebrides..........
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Ok a quick check looks like Three have 4g coverage in Glasgow and Edinburgh, nothing in between, and no 3G coverage north of Stirling!
So its back to EE !
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>>in short, O2 as a company really aren't wanting customers
They want them, but they are not currently prepared to invest or discount to get them.
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>> >>in short, O2 as a company really aren't wanting customers
>>
>> They want them, but they are not currently prepared to invest or discount to get
>> them.
Another issue is that the sale of O2 to 3 is going through the Competition Commission regulatory period at the moment, so neither party wishes to be seen to be acting in a predatory or monopolistic way or trying to distort the market. Published prices is what you get and nothing less.
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Well have gone to the dark side!!
Iphone 6 64GB
unlimited mins, calls and 2GB data
£31.99 per month
£39.99 for the phone
with EE through buymobiles.net
best deal I have seen for any of the "top" phones, considering a SIM only deal is about £15-£20 per month, an extra £12pm or so for the iphone seems a good deal!
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Is that a 2 year contract?
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O2 business model - Zero
