7/2/2009 11:22:00 AM
T-Mobile wades into O2’s family affair in attempt to cut churn
T-Mobile has undercut O2 with an offer specifically aimed at family, which it hopes will cut churn on its 16.7 million customers.
The family booster offers unlimited calling, texts and picture messaging between five users, if one person pays £5 per month for the booster.
T-Mobile’s head of propositions, Jon Cowan, said: ‘We want to strengthen our existing base and build loyalty.’
T-Mobile was bullish that its offering would beat off the competition with ‘value’ and ‘quality’ as the primary differentiators.
The £5 deal undercuts O2’s similar offering of a family bolt-on for £7.50, which also provides unlimited calls, texts and picture messaging.
T-Mobile tried to launch a family proposition under previous MD Jim Hyde two years ago but it failed to take off.
See page 6 for details on O2’s family strategy.