Deutsche Telekom’s multi-brand strategy starts with congstar – the fastfood of mobile

Rating: OMG congstar what an awful name

by Bena Roberts

I am listening to the Deutsche Telekom presse conference on the new congstar multi-brand strategy as I write. Deutsche Telekom has launched a new brand, congstar.
Basically after hours and hours of discussion with mobile consumers Dr. Alexander Lautz from T-Mobile found that the main problems with mobile and telecoms today are:

1. Very long contracts – people in Germany feel chained to contracts…
2. Price – confusing..
3. Lack of choice – don’t want to stay with the mobile provider but can’t move.

This is the new brand image and the advert will come out on Friday in Germany.

The new congstar will eliminate these problems by offering what DT describe as the fastfood of mobile. Contracts can be cancelled two weeks at the end of every month, prices are transparent and simple and flexibility for DSL prices and mobile are the main priority. Also there are 350 DSL providers and 90 mobile service providers means competition is tough and Deutsche Telekom is going to (according to Lautz revolutionise mobile).

The prices for congstar mobile: EUR 19.99 for the SIM. No charges or monthly fee. Then EUR 0.19 at all times. Flat rate fees are available for monthly congstar to congstar (EUR 4.99 per month) or all calls to fixed lines EUR 9.99 per month. Calls to mobile operators (O2 and E-Plus) EUR 14.99 each per month or to T-Mobile and Vodafone (EUR 19.99) per month.

What we think?
My initial impression was fastfood makes me vomit…. Will congstar do the same?

OK – we hate the name. But congstar seems to be embracing flat-rates big time. What is missing is a flat rate for calling to all mobile tariffs in one go. There is a EUR 14.99 fee for O2 or E-Plus calls; EUR 19.99 for T-Mobile and Vodafone – this is an individual rate. But in general mobile users have friends and family in all different tariffs and one rate for all mobile operators is missing.

Also why is T-Mobile 19.99 - wouldn’t it have been better to make it cheaper as its all under DT?

The basic rate EUR 0.19 for all calls at all time is good. I love the flexibility of cancelling a contract with only two weeks notice and tomorrow I am going to buy one… But (and its a big but) I can’t use this abroad…

Related News:

1. GoMo News gets congstar
2. ICSS (international carrier sales and solutions) Analyst Round Table – Deutsche Telekom
3. Deutsche Telekom Strike – shares fall to EUR 12.56
4. Devicescape and Deutsche Telekom enable easier access for users and devices to T-Mobile Networks
5. The double extra cheese mobile phone tariff