O2 considers a new ‘U-Fix’ model to help struggling customers

O2 considers a new ‘U-Fix’ model to help struggling customers
O2 UK CEO Ronan Dunne said the operator will focus hard on offering customers better value and control of their spending, in light of tough economic conditions.

His comments come a week ahead of what is expected to be another set of industry-leading financial results for the final quarter of 2008.

Dunne indicated that O2 may even copy T-Mobile’s prepay-postpay combination proposition.

T-Mobile’s U-Fix works as a contract, offering a certain amount of minutes and texts per month for a fixed line rental, but doesn’t let the customer go over the allocated bundle. If the customer wishes to exceed the fixed volume, they switch to prepay.

Dunne said O2 was already trialling the scheme in Ireland and is ‘looking at a control cap’.

He said there were already two consumer trends playing out as the economic conditions worsened. He added: ‘Customers are becoming more discerning and opting for the brands they trust.’ Dunne suggested more customers saw O2 as a safe, reliable operator and were switching to the network.

He said the other trend was even greater numbers of customers choosing O2’s Sim-only tariff, Simplicity.

Responding to criticisms that a by-product of O2’s Sim-only strategy would be higher churn, Dunne said: ‘Our experience with Simplicity is that churn is the same as that of traditional contracts.’
Written by Mobile Today
Mobile Today


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