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Verdict: 3 tariffs expensive but attractive

March 2, 2003

 

When 3 UK (Hutchison 3G UK) released details of its 3G handsets (£399 to £449) and the price of two monthly tariff plans (£59.99 and £99.99) back in December, many criticised them for being too expensive. With only around 6 or 7 percent of the UK mobile phone users spending in excess of £50 a month there were few optimistic that 3 would be able to pull in 1million users by the end of the year.

In early February, 3 released more details on the monthly allowance for both existing packages and also introduced a third package aimed at the lower spending customers. Colin Tucker, UK Managing Director at 3, said the pricing is highly competitive with existing mobile voice and text services. So are the packages value for money?

The first package, so-called '3ToGo', is for the lesser mobile users. Unlike the other two packages, subscribers do not have to pay monthly line rental and are only charged for the calls they make. You could compare this option as very much like "pay as you go" packages where you pay for the handset and the calls made. Voice calls to other 3 customers are charged at 5p a minute while other voice calls start from 10p a minute (most probably to landlines) although it is not know how much calls to other mobile networks are charged. Video calls are charged 50p a minute. Video downloads are around 50p each while each video messages are 50p. Text messages are 10p each and picture messaging is at 25p.

The second offer, Kit On 3 (£59.99 a month), includes 1000 minutes of voice calls a month, 100 video call minutes, 250 text messages, 60 picture messages, 40 video messages and 50 downloads. If you compare this package with current monthly tariffs on 2G networks you are certainly going to find this very attractive. On Vodafone, the Voda 800 tariff for £70 a month will only give you 800 minutes worth of voice calls but does not include any messaging allowances. The O2 Max package on O2 includes 1000 minutes of voice and 50 text messages for £75 a month. With Orange, £70 a month gets you just 700 minutes of calls and the Everyone 500 tariff on T-Mobile gives you 500 minutes for £60 a month.

The final package, Caboodle On 3, doubles the inclusive allowance of Kit On 3. So for £99.99 a month you get 2,000 minutes of voice, 200 video call minutes, 500 text messages, 120 picture messages, 80 video messages and 100 downloads. None of the other current 2G tariffs compares with this package. On Orange you need to pay £185 a month to get 2000 minutes of voice calls and £124 a month on Vodafone gives you only 1100 minutes.

Package
Price
Inclusive mins
Average price per min
Caboodle
£99.99
2000
5p
Kit on 3
£59.99
1000
6p
O2 Max
£75
1000
7.5 p
Voda 800
£70
800
8.8 p
Orange 2000
£185
2000
9.3 p
Orange 700
£70
700
10p
Voda 1100
£124
1100
11.3p
T-Mobile Everyone 500
£60
500
12p
Compare to other packages on offered in the UK, Caboodle and 'Kit on 3' offers value for price. For £99.99 you get 2000 minutes free, that is an average of 5p per free minute.

Certainly the Kit On 3 and Caboodle On 3 are value for money for what you are getting. It beats the tariffs that are out there just on voice calls plus you get extra allowances such as video messages and picture messages. One significant difference is that 3 does not have peak and non-peak periods so call charges are the same throughout the day/week.

3ToGo is for those that want the convenience of pay as you go (with much higher handset prices) or those that want a 3G handset but does not want to pay such high monthly rates for the privilege. The last two tariffs are suited to heavy mobile users and business customers that make a lot of calls during the day but the Kit On 3 has enough monthly allowance to satisfy most mobile users. Even so £59.99 a month is much more than what some mobile users are willing to pay despite being a great value. It's a shame that 3 has not introduced a tariff in the region of £20 to £30 for consumers that want cheaper tariffs with monthly allowances. 3 may experience difficulties in getting 1 million subscribers by the end of the year but consumers cannot say they are not getting value for money.

Packages: 3 To Go Kit on 3 Caboodle on 3
Description: no subscription fee, all services charged by usage. £59.99 per month subscription, which pays for a bundle of voice minutes, video minutes, text messages, multimedia messages and content/application downloads. Usage charges apply for any excess (eg voice calls from 15p a minute, video calls from 50p a minute). 1000 minutes free. Caboodle on 3: £99.99 per month subscription, which pays for a bundle twice as big as the 'Kit' package. The same usage charges apply for any excess. 2000 minutes free.
Aim for: Casual users who want to experiment with the new technology. Heavy users with annual income of £30,000. Corporate users.
Value for money: 3 out of 5 4 out of 5 4 out of 5
Comments: The best 'pay as you go' plans available on the market. Excellent value for money, but once you exceeded the limit it can be quite expensive. 2000 minutes free but even corporate users will find it hard to justify spending this much.

 


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5. Motorola A920 on 3
last updated: January 12, 2004

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