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Thursday, March 08, 2007

UK Mobile: Airtime Only Deals

Both, Vodafone and O2 have started offering (and more importantly promoting) Airtime only deals for the first time in at least a decade. This is a very interesting market development.

Not to be outdone, Carphone have immediately countered with perhaps the most mental deal of the year so far.

It does not take a genius to figure out that if Carphone works on a Gross Margin of around £100 per connection, either the o2 commissions are huge or the non-take-up of cashbacks is
huge. I cannot for the life of me imagine the quality of customers signing up to these deals.