News 2000
Copycat with a sharp clause
03/10/2000
Virgin Challenges Vodafone To Drop 'Across-The-Board' Charges
Virgin Mobile has challenged Vodafone to drop expensive daytime call charges across all its tariffs, following the launch of its Pay As You Talk Smartstep package. Described by Vodafone as perfect for 'customers that like to talk during the day', Virgin Mobile is asking 'if it's a good deal, why not make it available to everyone?'
Comments Steven Day, corporate affairs director at Virgin Mobile: "The new tariff is a smart step in the right direction for Vodafone - why should mobile users have to pay more at popular times of the day? However, it seems as though they have introduced this package just to get new customers, whilst penalising existing ones with the old-style charges. Vodafone customers wanting to transfer are faced with a number of clauses they have to face - especially those on contract deals. In contrast, the Virgin Mobile tariff is open to all.
Based on a reducing charge structure, Vodafone Pay As You Talk Smartstep copies the one pioneered by Virgin Mobile last year. But, although the new tariff is an improvement on others on offer, it has one crucial difference: it is still always more expensive for the user than with Virgin.
Vodafone Pay As You Talk Smartstep costs 25 pence per minute for each of the first three minutes of the day and five pence thereafter. Virgin Mobile offers consumers a much better deal: 15 pence for each of the first five minutes of a day and five pence after that. As a result, both low users and high users win.
Here's how the costs stack up for users on each network.
| Usage time (per day) | 1 min | 2 mins | 3 mins | 4 mins | 5 mins | 6 mins | 7 mins |
| Cost (Vodafone) | 25p | 50p | 75p | 80p | 85p | 90p | 95p |
| Cost (Virgin) | 15p | 30p | 45p | 60p | 75p | 80p | 85p |
The benefits of being on the Virgin 'virtual' network don't even stop there. Vodafone charges for picking up voicemail messages at its 25/5p rate (with Virgin this service is free); calls to non-Vodafone mobiles are charged at 40p (35p on Virgin); and SMS is 12p per message (10p with Virgin).
Virgin Mobile also offers exclusive access to its Xtras service, which allows the phone user to benefit from discounts of up to 50% off electrical goods and discounts on holidays, travel, music, CDs and videos.
Adds Steven Day: "Vodafone clearly believes in the strengths and innovations we have brought to the industry. But our unbeatable service and cheap, all-round tariff is by far the better deal for consumers."
