Thursday, October 19, 2006

Customer inertia

Sometime ago I read in the FT that mobile phone companies make about 40% of their profit from customer inertia - in other words customers not knowing that they could be on a cheaper tariff. Sadly I fall into that 40%, but have been rudely awakened by a 50% increase in the monthly charge for a UK phone that has now been switched off for many months! So dear Vodafone, you will now lose me completely.

I thought about getting a mobile phone in Singapore, but the surreal phone shops in the malls don't cater for oldies who just want a prepaid tariff for an existing phone. No video, no camera, no ring tones, no Bluetooth, just a vanilla phone. Chinatown I have been told will hold the answer.

We'll all go VoIP within 18 months anyway - and then their revenue stream (I too know the jargon) will evaporate. I shall shed no tears.

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