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Wednesday, August 18, 2010

Unlimited Internet means just 1GB at O2

James Rosewell writes:

Yesterday I received the following text message from O2: “You’ve gone over your data allowance on your mobile. You need to cut down or get a bigger Bolt On to keep using the internet.” I thought this was strange as I’ve an unlimited data bolt on applied to my O2 UK contract so I decided to telephone O2 customer services to find out a little bit more. Here’s what happened.

Apparently my mobile internet would continue to work and the message actually meant I’d fallen foul of O2’s fair usage policy. There’s a team of people who monitor usage and send out these text messages. As my usage is normally 800MB per month and I’d reached 1.3GB in the last month I’d received the text message.

On further enquiry, O2’s customer service representative and I established that 'fair usage' on an unlimited contract is around 1GB per month. That said, O2 customer services couldn’t provide me a copy of this fair usage policy.

I completely understand O2's (and any other MNO’s) need to control data consumption, particularly given the delays to LTE deployment in the UK. However if an MNO is of the view 1GB is enough data usage for a smartphone they’re in for some serious consumer backlash. The marketing message reaching consumers is that you can surf the full internet, watch videos, play games, send and receive pictures and video, monitor your e-mail, listen to podcasts etc, all on your mobile phone. Smartphones in particular easily enable the consumption of these services for non tech savvy users.

So let’s do some maths based on the following assumptions:

· e-mail including sending and receiving photos could be around 200MB per month.

· 1 hour of YouTube videos on a mobile will consume 70MB to 135MB depending on settings.

· 1 hour of audio podcasts at about 35MB.

If you have a  2 hour commute each working day and like to fill your time listening to podcasts, you’ll be consuming 1400MB of data. Now add the email and some modest YouTube watching on top and you’ll be over the 2GB mark. And that doesn’t include sending your mates any videos filmed on your mobile.

MNOs will be shouting "WiFi’s the answer". And of course it’ll help... if consumers are educated to use it. And even if it can be used it’ll eat battery life if left on permanently. In fact in my situation I’d turned it off when staying away for a few days and forgot to turn it back on when I got home, leading to higher consumption.

As most MNOs are no longer offering unlimited internet in the UK (virtual network giffgaff is a notable exception at the time of writing) and, in most cases, usage beyond the fixed amount will be charged on a per MB basis, there are a lot of customers who’re going to get a shock when they start using all the features of their shiny new phones. This is especially true given the trend to include a mere 500MB of usage in new data contracts.

 

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Opinion Articles

UK riots hit the mobile industry

Mark Bridge writes:

Having just returned from a week's holiday in a part of the country where mobile coverage was surprisingly sparse, it struck me how much mobile phones were linked to the recent English riots and looting.

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Rhona Cashman from OtterBox explains the secrets of mobile phone cases

Mark Bridge writes:

A mobile phone case is often seen simply as a revenue opportunity for retailers. But, as you might expect, there's a lot more to this type of accessory than first meets the eye.

I started this week's podcast feature by asking Rhona Cashman from protective case manufacturer OtterBox why mobile phone dealers should be discerning about the cases they sell.

Author: The Fonecast
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Steve Ballmer and Rupert Murdoch - both troubled by their one-percent businesses

Mark Bridge writes:

Last month, News Corporation's Rupert Murdoch said the News of the World had accounted for just 1% of his global business. It's a figure that put the overall size of News Corp into perspective.

This week, some analysis of Microsoft's financial results seems to suggest Windows Phone is only generating a similarly small percentage for its parent.

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Google claims 'hostile campaign' against Android by Microsoft and Apple

Mark Bridge writes:

David Drummond, Google's Senior Vice President and Chief Legal Officer, has just written a blog post that describes an 'anti-competitive strategy' against Android by companies including Apple, Microsoft and Oracle. Entitled "When patents attack Android", it points out that more than 550,000 Android devices are now activated every day... and says this has resulted in "a hostile, organized campaign against Android".

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I'm unconvinced about the new T-Mobile hybrid tariff

Mark Bridge writes:

I don't like marketing spin. You know, the kind of thing where the small print contradicts the headlines or where an embarrassing u-turn becomes a benefit. Given my chosen profession, I find it tends to stand out.

And so I turn my attention to T-Mobile's new 'You Fix' tariff. Sounds rather like T-Mobile's 2005 'U-Fix' tariff, but that may be coincidence. You pay a fixed monthly fee and - if you use all of your inclusive calls - you can add an additional allowance during the month by paying a bit more. Rather like buying a top-up on a prepay phone.

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