Rating: Tesco might be making a smart move
There’s nothing like personal experience to bring home a crucial issue in the mobile industry to you. And GoMo News has just received some very important news from our UK MNO – Orange. Yes, we have two separate accounts with the marketing arm of EE and have just been informed that our contracts are going up. They are not particularly steep rises but it is the principle that matters. Like most UK consumers we weren’t aware although the contract’s timescale is binding, the payment amount isn’t. MNOs are currently free to raise it. Which makes the recent announcement from UK MVNO Tesco (see here) so more important.
Tesco has just announced its Tariff Promise which is a commitment never to raise its customers’ core tariff prices mid-contract – which it claims is the first move of its kind amongst network providers in the UK.
Now the extra amount per month which Orange wants to charge us for our main SIM account is a lowly 84 pence.
However, we are a bit surprised that our second contract which was only taken out this year  has also gone up by 51 pence.
Which is probably why industry observers are so intrigued that Tesco can make such a commitment.
Does this mean that O2 (which hosts the Tesco network) has promised not to put up its prices for Tesco?
Significantly, uSwitch.com’s resident telecoms expert Ernest Doku, observes,” “Following EE’s announcement that from April its customers will have the option to fix the price of their monthly bills for a small premium, this move from Tesco Mobile arguably goes one step further. ”
He continues, “By ensuring that customers automatically benefit from no price rises, rather than by opting in and paying a premium, plus ensuring that all plans have a fixed price for their duration, it brings some much-needed clarity and reassurance.”
GoMobile News wonders just how far the patience of rival network operators’ subscribers will be tried.
Especially since our loyalty and possible inclination to churn will be sorely tested for a mere 84 pence per month.
Following on from having just spent 20 minutes waiting to talk to an agent in Orange’s call centre about the fact that its computer systems were down, we would question the wisdom of these price hikes.
Especially since we have been with Orange UK since Day One. “Is this wise, Captain Mainwearing?”