Fergie's Tech Blog

UK: Vodafone's Double-Step Scam

Kieren McCarthy writes over on his blog:

It's an unending mystery to me how mobile phone companies have persuaded entire nations to pay huge monthly bills when only a few years ago people were complaining about the cost of public telephone boxes.

The most recent tactic adopted by the world's biggest mobile phone company, Vodafone, is simply to tell you one thing and a charge something else (always more), with the reasonable expectation that only a small percentage of people will notice and/or complain. It is the New Economics of the Withheld Promise.

The scam - because that's what it is - is to offer a special deal on a big package. So, for example, you are offered six months at half-price if you sign an 18-month deal. This aides the salesman into getting you onto a larger tariff than you really need by stressing the real cost to you at that moment. This much greater text and voice minute allocation in turn encourages more mobile phone use.

posted by Fergie @ 2/14/2006 07:07:00 AM