How does Tesco make a profit on this mobile phone deal?

[Woodchips2]

I’ve had a Tesco mobile phone on a pay monthly scheme for a little over two years. Recently I signed up for a new 24 month contract with a free Motorola Moto E smartphone that runs on 4G. For £7.50 a month I get 250 minutes of calls, 5000 texts and 500MB of data.

This week I got offered a £3 discount off my monthly bill if I accept adverts so I am now paying just £4.50 a month with a free phone that would have cost me £79 if I had to buy it. They also increased the data allowance to 700MB to cover the adverts.

The economics baffle me! :roll:

Regards Keith

 

[clk230]

They pay less then your paying LOL #-o

 

[ChrisR]

Simple, they screw the original supplier into the ground.

Chris.

 

[Rorschach]

Because like most most utilities they are way overpriced in the first place and they make their money by fleecing stupid/lazy people.

 

[RogerS]

That's cracking deal, Keith, and so thanks for posting. I've just gone out of contract (with Tesco/Orange) as it happens and so I'm looking around for a new contract/phone. The one downside is that they seem to use O2 now and round here O2 coverage is dire.

 

[Robbo3]

The markup for text messages is 5,961% according to Business Insider - scroll down to Electronics.
The rest will shock you as well (if you believe the figures).

- http://uk.businessinsider.com/products- ... ups-2014-7

 

[petermillard]

The markup for text messages is 5,961% according to Business Insider - scroll down to Electronics.
The rest will shock you as well (if you believe the figures).

- http://uk.businessinsider.com/products- ... ups-2014-7

I think you can take anything "Business Insider" says with a very large pinch of salt - not least because they use US data and prices, even on the UK site. That said, texting has always been expensive in the US vs UK/Europe, hence the proliferation of 'more texts included in your bundle than any sane person who isn't a teenager could possibly use' deals here.

That piece also ignores business fundamentals/common sense e.g. 'House painting' apparently has a markup of 6000-odd% when they compare a $9000 company fee to $140 or materials used - conveniently ignoring the costs associated with the company (salaries, overhead, wear and tear, VAT, HSE compliance etc...) or indeed the cost of your time if you were to do it yourself...

 

[Woodchips2]

That's cracking deal, Keith, and so thanks for posting. I've just gone out of contract (with Tesco/Orange) as it happens and so I'm looking around for a new contract/phone. The one downside is that they seem to use O2 now and round here O2 coverage is dire.

Thanks Roger, it works out cheaper for me than PAYG and I find the phone very good for accessing the internet because it uses 4G. Maybe worth asking Tesco if this would make a difference in your area.

I'm becoming a silver surfer nerd because I now use the phone as a diary, shopping list, GPS unit with Viewranger http://www.viewranger.com/en-GB, checking tide times, e-mails etc

Regards Keith

 

[RogerS]

That's cracking deal, Keith, and so thanks for posting. I've just gone out of contract (with Tesco/Orange) as it happens and so I'm looking around for a new contract/phone. The one downside is that they seem to use O2 now and round here O2 coverage is dire.

Thanks Roger, it works out cheaper for me than PAYG and I find the phone very good for accessing the internet because it uses 4G. Maybe worth asking Tesco if this would make a difference in your area.

I'm becoming a silver surfer nerd because I now use the phone as a diary, shopping list, GPS unit with Viewranger http://www.viewranger.com/en-GB, checking tide times, e-mails etc

Regards Keith

4G? 4G? :shock: There's luxury :lol: I can but dream of 4G.

 

[MMUK]

That's cracking deal, Keith, and so thanks for posting. I've just gone out of contract (with Tesco/Orange) as it happens and so I'm looking around for a new contract/phone. The one downside is that they seem to use O2 now and round here O2 coverage is dire.

Tesco has used O2 for years now. GiffGaff use O2 as well so you may as well count them out.

BT now own EE/Orange/TMobile, whatever you want to call them. TBH, EE service has gone downhill ever since the takeover. I have nothing but trouble with signal quality these last few months. Can't wait for my contracts to end!

The only realistic option, for me anyway, looking forward is Vodafone. I've heard nothing but good reviews on service and coverage recently. They're still a little pricey but I'd rather the better coverage and pay a little extra for it.

 

[Wuffles]

Get a Three PAYG sim and see what it's like for you. We've used all the others and this turned out to be (surprisingly) the best for us - especially abroad.

 

[RogerS]

That's cracking deal, Keith, and so thanks for posting. I've just gone out of contract (with Tesco/Orange) as it happens and so I'm looking around for a new contract/phone. The one downside is that they seem to use O2 now and round here O2 coverage is dire.

Tesco has used O2 for years now. GiffGaff use O2 as well so you may as well count them out.

BT now own EE/Orange/TMobile, whatever you want to call them. TBH, EE service has gone downhill ever since the takeover. I have nothing but trouble with signal quality these last few months. Can't wait for my contracts to end!

The only realistic option, for me anyway, looking forward is Vodafone. I've heard nothing but good reviews on service and coverage recently. They're still a little pricey but I'd rather the better coverage and pay a little extra for it.

Tesco were using Orange 2 years ago as that is who I am with. Orange is fine as far as I'm concerned.

 

[MMUK]

That's cracking deal, Keith, and so thanks for posting. I've just gone out of contract (with Tesco/Orange) as it happens and so I'm looking around for a new contract/phone. The one downside is that they seem to use O2 now and round here O2 coverage is dire.

Tesco has used O2 for years now. GiffGaff use O2 as well so you may as well count them out.

BT now own EE/Orange/TMobile, whatever you want to call them. TBH, EE service has gone downhill ever since the takeover. I have nothing but trouble with signal quality these last few months. Can't wait for my contracts to end!

The only realistic option, for me anyway, looking forward is Vodafone. I've heard nothing but good reviews on service and coverage recently. They're still a little pricey but I'd rather the better coverage and pay a little extra for it.

Tesco were using Orange 2 years ago as that is who I am with. Orange is fine as far as I'm concerned.

Are you sure its a Tesco contract? You didn't buy an Orange/EE contract from Tesco.com?

 

[Woodchips2]

Definitely a Tesco contract, details at http://shop.tescomobile.com/pay-monthly ... deal=31814 and I pay my monthly £4.50 to Tesco. It sometimes shoots up to £4.65 if Radio Devon have wound me up enough to send them a text. Not sure why a text to the BBC is not included in my monthly allowance. :shock:

Regards Keith

ps I'm not a secret agent for Tesco, I avoid the store whenever possible apart from the mobile phone deal :roll:

 

[RogerS]

.....Not sure why a text to the BBC is not included in my monthly allowance. :shock:

....

That's because the BBC ignores all complaints from TV licence fee payers :evil:

 

[RogerS]

A quick heads-up to anyone thinking about the current offering from Tesco (who now use the O2 network). O2 offer a piece of s/w called TuGo that lets you call out and people call you via the internet in areas where there is limited/no O2 mobile signal coverage.

Note: This is NOT available on the Tesco 'network'.

 

[MMUK]

A quick heads-up to anyone thinking about the current offering from Tesco (who now use the O2 network). O2 offer a piece of s/w called TuGo that lets you call out and people call you via the internet in areas where there is limited/no O2 mobile signal coverage.

Note: This is NOT available on the Tesco 'network'.

You can do that on Whatsapp and Facebook Messenger (hammer)

 

[RogerS]

A quick heads-up to anyone thinking about the current offering from Tesco (who now use the O2 network). O2 offer a piece of s/w called TuGo that lets you call out and people call you via the internet in areas where there is limited/no O2 mobile signal coverage.

Note: This is NOT available on the Tesco 'network'.

You can do that on Whatsapp and Facebook Messenger (hammer)

But those are of little use if someone wants to call me from, say, a landline. Unless I am mistaken.

 

[MMUK]

A quick heads-up to anyone thinking about the current offering from Tesco (who now use the O2 network). O2 offer a piece of s/w called TuGo that lets you call out and people call you via the internet in areas where there is limited/no O2 mobile signal coverage.

Note: This is NOT available on the Tesco 'network'.

You can do that on Whatsapp and Facebook Messenger (hammer)

But those are of little use if someone wants to call me from, say, a landline. Unless I am mistaken.

But if you've no mobile signal then it's unlikely you will get a data signal in any case, unless of course you can hack into an unsecured wifi network :-"

 

[RogerS]

You can do that on Whatsapp and Facebook Messenger (hammer)

But those are of little use if someone wants to call me from, say, a landline. Unless I am mistaken.

But if you've no mobile signal then it's unlikely you will get a data signal in any case, unless of course you can hack into an unsecured wifi network :-"

LOL!


You're missing the simpler scenario. My home ! Normal broadband connection.