11/25/2010 10:06:00 AM
Everything Everywhere gambles on tablets
Everything Everywhere is launching an assault on the tablet market this Christmas, with an industry first ‘tablet tariff’ due to be unveiled by the joint venture next month.
The news follows the announcement this week that both T-Mobile and Orange will subsidise Apple’s iPad through their direct channels.
Sources told Mobile that Samsung’s Galaxy Tab, the only other tablet currently on the market, will also be subsidised by Everything Everywhere in the near future. The source said: ‘December will see a change in pricing. We will look to introduce a general tablet package.’
The operator said it wants to be the ‘home of the tablet’ as it looks to grow its customer base and drive data ARPU.
Industry sources said the move to subsidise otherwise expensive tablets was part of a plan to ‘own the market’.
One distributor source said: ‘It will be good for getting subscribers. I just question whether end users will queue up to buy a tablet on a second contract. They [Everything Everywhere] need to bundle.’
He added: ‘The networks haven’t found a perfect model. Everything Everywhere’s move to subsidise is a bold move that will find out what the demand levels are. If it works, great, and if it doesn’t, they haven’t lost any subsidies.’
Samsung’s Galaxy Tab is currently only available free on a £40 per month contract on Three. Apple’s iPad was only available on Orange and T-Mobile from December at the time Mobile went to press.
It is understood Apple’s device will cost £200 on a 24 month contract across both the Orange and T-Mobile brands.