Smartphones or cheap phones?

Mobile World Congress in Barcelona will no doubt have the usual array of shiny new phones (Toshiba’s TG01 looks pretty good on the press shots, for example).

But the most interesting action might well be at the bottom end of the market. In the last few weeks, both 3 and Virgin Mobile have announced tariffs below the important £10 barrier.

This could prove to be a smart move for networks, as it might convince pay as you go users to switch to a subscription — which is better for business as it guarantees cash flow. And networks with cheap deals could well win customers from dearer rivals, as subscribers look to cut their outgoings.

I won’t be surprised if at least one of the four major UK networks follow 3 and Virgin’s lead in the coming weeks.

For a bit of pre-MWC fun do vote in my poll on my media blog.


About stephenpritchard
Freelance journalist specialising in business and technology, based in London (UK).

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