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Profile: Vodafone's Al Russell on its pay-as-you-go mobile broadband push
10 Dec 2009 | 18.26 Europe/London
Vodafone will see in the New Year with a concerted push to encourage pay-as-you-go customers to use data to coincide with its launch of the iPhone.
Although the network has not announced a date when it is allowed to start selling the iconic smartphone, it is widely believed to be from the first week of January onwards. It will then become the third operator offering the iPhone, alongside O2 and Orange.
Vodafone’s Head of Internet Services, Al Russell, tells SamKnows that this is helping to underline the network’s big push for 2010 to get pay-as-you-go customers using data on their mobile device. At the moment, he points out, the overall mobile market is split 60:40 in favour of pay-as-you-go and that typically it is only those on a monthly contract with an unlimited amount of data usage who feel comfortable downloading material.
“We have a cap charge of 50p per day for anyone on pay-as-you-go so regardless of the handset they have or how much data they download, they will not be charged more than 50p in any one day,” he says.
“That can be reassuring but we think we’re going to have to work on new measures to make people on a pay-as-you-go tariff feel comfortable in using data without a fear they’re working up a large bill. Our big focus for the months ahead is to work on packages that make data more attractive.”
While he will not be drawn on the measures the network will take to attract pay-as-you-go customers to spend more time, and credit, on downloading, it seems likely that the 50p per day limit will be reduced or, if kept, extended to include mobile broadband for longer than just a day.
Cheaper handsets
Another factor in getting pay-as-you-go customers introduced to mobile broadband will be the cost of handsets, Russell maintains. With so much activity based around Google’s Android mobile operating system, new models should see lower prices.
“There are a lot of smartphones due for release in 2010, we’re going to see a lot of exciting activity,” Russell adds.
“I think we’re going to see the iPhone as the top tier but then have lots of competing handsets just below that and we’ll be launching our Vodafone 360 service beyond the single Samsung handset it’s currently on.
“Android is really exciting, most of the handset manufacturers are working with it and so we’re expecting prices to come down to a point where smarthphone that give an engaging mobile broadband experience are going to be available at a range of lower price points than today.”
Russell's insight in to Vodafone's strategy for the coming months would suggest that, come January when it is pushing the iPhone, consumers may well get a choice of tariff. Many mobile broadband users were disappointed that Orange simply replicated O2's tariffs when it won the contract to sell the phone in the run up to Christmas. While the measures Rusell is promising will apply for all mobile devices, there is little doubt the iPhone coming to the network is sharpening its thinking in how it should revise pay-as-you-go mobile broadband tariffs.
Although the network has not announced a date when it is allowed to start selling the iconic smartphone, it is widely believed to be from the first week of January onwards. It will then become the third operator offering the iPhone, alongside O2 and Orange.
Vodafone’s Head of Internet Services, Al Russell, tells SamKnows that this is helping to underline the network’s big push for 2010 to get pay-as-you-go customers using data on their mobile device. At the moment, he points out, the overall mobile market is split 60:40 in favour of pay-as-you-go and that typically it is only those on a monthly contract with an unlimited amount of data usage who feel comfortable downloading material.
“We have a cap charge of 50p per day for anyone on pay-as-you-go so regardless of the handset they have or how much data they download, they will not be charged more than 50p in any one day,” he says.
“That can be reassuring but we think we’re going to have to work on new measures to make people on a pay-as-you-go tariff feel comfortable in using data without a fear they’re working up a large bill. Our big focus for the months ahead is to work on packages that make data more attractive.”
While he will not be drawn on the measures the network will take to attract pay-as-you-go customers to spend more time, and credit, on downloading, it seems likely that the 50p per day limit will be reduced or, if kept, extended to include mobile broadband for longer than just a day.
Cheaper handsets
Another factor in getting pay-as-you-go customers introduced to mobile broadband will be the cost of handsets, Russell maintains. With so much activity based around Google’s Android mobile operating system, new models should see lower prices.
“There are a lot of smartphones due for release in 2010, we’re going to see a lot of exciting activity,” Russell adds.
“I think we’re going to see the iPhone as the top tier but then have lots of competing handsets just below that and we’ll be launching our Vodafone 360 service beyond the single Samsung handset it’s currently on.
“Android is really exciting, most of the handset manufacturers are working with it and so we’re expecting prices to come down to a point where smarthphone that give an engaging mobile broadband experience are going to be available at a range of lower price points than today.”
Russell's insight in to Vodafone's strategy for the coming months would suggest that, come January when it is pushing the iPhone, consumers may well get a choice of tariff. Many mobile broadband users were disappointed that Orange simply replicated O2's tariffs when it won the contract to sell the phone in the run up to Christmas. While the measures Rusell is promising will apply for all mobile devices, there is little doubt the iPhone coming to the network is sharpening its thinking in how it should revise pay-as-you-go mobile broadband tariffs.