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There is a trend popular today with mobile phone providers offering free calls to entice new users, but obviously, if the calls were actually free, the mobile phone carrier would quickly go out of business. Rest assured, somewhere down the line, those “free” mobile phone calls are not so free. However, just because something is free (with additional services or other obligations of course) does not mean the word “free” isn’t attractive to customers. The mobile phone industry has found something that works, and if it works, it’s an obvious step to keep doing what has proven successful. What exactly does ‘free’ cost today? Let’s take a look at what the some of the more popular mobile phone service providers actually mean when use the word. BT Mobile is currently offering 200 free minutes and unlimited calling! Wow, how can BT Mobile offer unlimited calling and 200 free minutes at the same time? If you had unlimited calling, you probably would not find need of the 200 free minutes, right? What is BT Mobile really offering? The 200 free minutes offered by BT Mobile is with new, select mobile phone purchase. In addition, the free 200 minutes is for the first 6 months with the purchase of the 200 additional minutes – sort of similar to a buy one get one free deal. In reality, the new user has to purchase the plan costing £30 per month during the promotional period, and commit to a 12 month term. The unlimited calling offered by BT Mobile is for any call under 2 minutes made directly to a specified fixed line within the UK. If the call goes over 2 minutes, the normal fee applies. In addition, the user is limited to 1000 such minutes per month shared on the account, and applies to new primary accounts only. How much are those “free” 200 minutes in reality? I find it peculiar that BT 200 offers a basic 200 minutes for £20, and the “free” 200 minutes ups the price to £30 per month. Doesn’t this mean those extra 200 minutes are in reality £10 extra? A more interesting question would be after the initial 6 months, does the price for the plan drop to £20? The price for an annual plan, the commitment term, of BT 200 would equal £240; for the “free” minutes, the new user is committed to £360. The difference really adds up. O2 , another enormously popular mobile phone service provider , offers free calls Saturday, Sunday, and Monday! Wow, that is a great deal, right? Well, like all other “free” products and services, there is indeed a cost. With the purchase of a new Motorola K1 KRZR, the new customer is allowed free calling for the extended weekend. Furthermore, the offer is only valid for plans of a tariff £35 per month or more, and those willing to commit to a plan of between 6 and 18 months. The extended weekend plan is for life if you commit to the 18 month contract but only for 6 months with a 12 month contract. Plus, there is a maximum of 2000 minutes per month. How much are those “free” minutes in reality? Surprisingly, those “free” minutes are actually free. The minutes and prices increase evenly for each plan, and there are no hidden fees. On the other hand, if you are going to get the most out of this promotion, it is vitally important to agree to an 18 month contract. Otherwise, those free minutes disappear after 6 months. Are those “free” minute or call promotions actually worth the cost? The truth will depend on what you expect from your mobile phone. BT Mobile offers free minutes with an agenda, but O2 offer a seemingly better deal. Before you ever agree to a service simply because you get something free, the smart shopper will look a bit deeper and see exactly how much “free” costs. Mobile phone providers often offer various promotions to get those new customers, but a lot of those customers wish they had looked a bit deeper for the truth. As always, a smart shopper gets all the information before making a decision. Free calls are great, but everything has its limits. Ask yourself, how many minutes do you really need? Then decide what is best for you.
Staff editor, Mobile Phones Section, March 2007 |
