3 has laid out plans to increase its contract market share after ‘rebuilding the business’ and launching a tariff aimed at undercutting its rivals across voice, text and data.
The ‘One Plan’ went on sale on 1 July, with 2,000 minutes, 5,000 3 to 3 minutes, 5,000 texts and 1GB of data starting at £25 per month. The price plan is around 40% cheaper than similar packages offered by O2, Orange and Vodafone.
Kevin Russell, 3’s CEO, said at a 3 event: ‘On a simple level it is a tariff. Strategically, it is a big deal for us, as we have spent the last three years rebuilding the business. Between 70% and 80% of our customers have been on a £15 price plan and below.
We are going straight back to the market and going head to head with the big boys.’
The network said it could offer the tariff ahead of termination rate reductions, which it has been campaigning for over the last three years.
‘The number one challenge is termination rates; they are fundamentally wrong and flawed. They have just been a barrier to use. We have abdicated the vast majority of the contract market and pushed harder over the last three years for MTRs to be addressed,’ said Russell.
However, some observers have suggested that the ‘One Plan’ represents a risky strategy for 3, which after seven years in the UK has still not broken even.
Despite this, the operator remained confident about the new proposition.
Russell said: ‘It puts us in a position to sit at any table for the first time and say 3 has the best network, tariff and handsets. We have
worked long and hard to get here and we are not going to back off now. Strategically, it is potentially a game changer.’