Virgin and 3 add to UK's complex mobile internet choices
Published: 7 August, 2009
READ MORE: UK | Virgin Media | Broadband | Cable | Cellular | Applications (Media) | Wi-Fi
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Bundles of services are clearly the way to go, according to UK regulator Ofcom, which said the recession had virtually killed 12-month contracts, and had boosted uptake of bundles. UK consumers said in a survey that they would cut usage of anything (except food) before they would reduce internet and mobile activity, but would look for lower prices. The average monthly spend internet, mobile voice and text, and fixed voice services declined to £65.01 in 2008 from £68.84 per household the previous year and £70.09 in 2006. This was achieved through higher use of bundles, and cheaper mobile contracts, including SIM-only.
According to Ofcom, 20% of all mobile contracts taken out since September 2008 have been SIM-only deals and 25% of new deals in Q109 were rolling one-month contracts. At the other end of the scale, a higher proportion of consumers are taking out longer 24-month contracts in return for lower monthly fees and heavily subsidized handsets. Its findings revealed that 12-month contracts, which accounted for 88% of postpaid mobile phone sales back in 2005, accounted for just 3% in the first quarter of 2009.
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