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Mobile Pricing Innovation: T-Mobile "Flext" Case Study

In March 2006, T-Mobile UK introduced a new range of postpay tariffs under the Flext brand. These tariffs have made a significant impact in a short period of time. In the current case study we:

• Consider why minute bundles which have been popular in the UK for the last number of years have found favour with customers in that market
• Explore the reasons T-Mobile decided the time was right to move away from bundled minute tariffs towards value allowance based tariff bundles in the UK market early in 2006
• Identify the enhancements to the Flext offer which T-Mobile felt were required in order to optimise its market impact
• Explain how the offer has been customised to stimulate greater demand through T-Mobile's direct channels
• Show how payback is guaranteed/improved upon by making the service exclusively available with extended service contacts
• Indicate how the success of the plan has outperformed expectations, leading to undersupply/overdemand, allowing T-Mobile to reduce channel commissions to manage demand for this service.

Price: EUR 2,500.00 / GBP 2,000.00

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Table of Contents

1
Overview
1
2
T-Mobile's Flext Tariff (UK)
2
2.1
Proposition
2
2.2
Flext in Other Countries
5
2.2.1
Flext Country Availability
5
2.2.2
Flext Plan Comparison in the UK
7
2.2.3
Tariff Comparison, Flext Vs. Other Tariffs in the UK
9
2.3
Promotional Response to Customer Feedback
13
2.4
Market Impact
13
3
Conclusions
15