T-Mobile UK Launches Flext Tariff Structure

LONDON -(Dow Jones)- T-Mobile International, the mobile arm of Deutsche Telekom, Thursday launched a new U.K. tariff structure called 'Flext,' designed to give customer more flexibility with mobile phone contracts.

T-Mobile is backing the launch of Flext with a double-digit million pound marketing campaign.

T-Mobile is investing GBP1.5 billion in the U.K. over the next two years to improve its performance in the region.

Flext allows T-Mobile users to choose the mix of voice, texts, picture messages and voice mail received as part of their contract. Mobile phone contracts typically set the volume of texts and minutes the customer receives and charge more when those limits are breached.

In addition, T-Mobile will monitor customer usage and every six months will alert the customer to different price plans that are more appropriate to their usage.

The tariff structure offers call rates as low as 3.9 pence a minute and texts at 1.94 pence, depending on the bundle the customer chooses to take.

Flext tariffs range between GBP20 a month, which offers up to 170 minutes or 340 texts, and GBP75 a month which offers up to 1,950 minutes a month or 3,900 text messages.

Jim Hyde, T-Mobile U.K.'s new managing director, told a conference call of journalists the company plans to be "very aggressive" with its growth plans.

Hyde said Flext was a response to customer demands for better value from mobile phone contracts. He said customers are frustrated by complex tariff structures, including over-run charges, which led to 'bill shock' at the end of the month. He noted that some customers carry two to three SIM cards or different devices to take advantage of different services or promotions, which reflects the rigidity of pricing structures.

Asked whether the tariff structure could lead to lower spending among customers simply looking for cheap voice minutes, Hyde said he expects Flext to stimulate growth as better value and tariff simplicity will give customers more confidence to try and use newer services like picture messaging.

As a result, he expects Flext to produce higher average revenue per user.

The U.K. mobile phone market is highly competitive and subject to significant price competition. 3 UK, owned by Hutchison Whampoa, last week launched a service whereby customers get cash credit for receiving calls to their mobiles.

Company Web site: http://www.tmobile.co.uk

-By Nic Fildes, Dow Jones Newswires; 44-20-7842-9264; nicolas.fildes@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 2nd February 2006