Selling iPhone 3G Won't Save T-Mobile

T-Mobile has apparently started selling the iPhone 3G to some of its customers who wish to leave the network and who spend £75 or more per month, in a desperate effort to keep them.

The problem though is that T-Mobile tariffs are quite high to start with. Flext 75 for example give you £575 worth of credit to spend on UK and international calls and texts, picture messages, 08 numbers and voicemail, all for the cost of £75 per month. You do get unlimited internet but you still have to pay for voicemail (20p a minute).

Compare that with O2. For the same £73.41 per month, you get the 3GS with 16GB (not the older 3G), with 3000 minutes and 500 texts, unlimited access to your voicemail, free internet and free WiFi with a similar 18 month contract. Bump your contract length to 24 months and O2 swaps the 16GB model for a 32GB GS.

T-Mobile needs to significantly rejig its price plans to compete with O2's tariff, especially at the upper end. For example, its most expensive fixed minutes and texts combination, the Combi 40 includes 1000 minutes, unlimited web and unlimited texts for only £41 (plus the phone). Introducing some more expensive Combi packages, as well as getting more top end smartphones, will be helpful.

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But that's not all, since you are an O2 customer, you will get their award winning O2 Home broadband at a significant discount, starting from as little as £7.34 per month.

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