What secret do you Europeans have?

Discussion in 'iPhone' started by Michael CM1, Jun 16, 2008.

  1. Michael CM1 macrumors 603

    Joined:
    Feb 4, 2008
    #1
    How is it that T-Mobile in Germany can offer an iPhone with a contract for ONE EURO and O2 in England can offer them free (did I mishear that one?)? What is it that they do that AT&T can't? AT&T is frickin eleventy billion years old, used to be the only game in town, is at the top in the U.S. in subscribers until the Verizon/Alltell deal goes through...what gives?

    My ONLY idea is it doesn't cost as much to cover smaller countries like England and Germany. Still, how in the heck are they doing this and can I get an O2 contract over here???? :)
     
  2. aristobrat macrumors G5

    Joined:
    Oct 14, 2005
    #2
    IIRC, that deal is only valid on their more expensive monthly plans.
     
  3. Archie- macrumors regular

    Joined:
    Nov 21, 2007
    #3
    Its because the iPhone failed in Europe. Apple is trying harder this time.
     
  4. JBaker122586 macrumors 65816

    Joined:
    Jun 21, 2007
    #4
    Has nothing to do with Apple.
     
  5. robbieduncan Moderator emeritus

    robbieduncan

    Joined:
    Jul 24, 2002
    Location:
    London
    #5
    You can only get an 8Gb iPhone free, and only if you are willing to commit to an 18 month contract at £45 a month or more ($90 more or less). They more than get their money back be the end of the deal!
     
  6. The Phazer macrumors 68030

    Joined:
    Oct 31, 2007
    Location:
    London, UK
    #6
    It costs more to cover countries when they're smaller. The UK has a tighter population density but would never put up with the lack of signal in the country that the US has.

    It's free market competition - to all intents and purposes 100% of the population has a mobile phone in the UK. So to grow as businesses operators in the UK have to lower prices to compete.

    Phazer
     
  7. cube macrumors G5

    Joined:
    May 10, 2004
    #7
    Do you know that some companies nearly went broke buying extremely expensive 3G licenses in some countries, only to see 3G flop?
     
  8. frosse macrumors 6502a

    Joined:
    Sep 23, 2007
    Location:
    Sweden
    #8
    Exactly, has zero to do with Apple.

    Higher plans equals cheaper phone.
    Lower plans equals higher phone.

    Though Id rather go with the latter. I prefer paying more for the phone itself than having high plans.
     
  9. ACDeag macrumors regular

    Joined:
    May 25, 2008
    Location:
    Edinburgh, UK
    #9
    It is only free on their £45 ($90) and £75 ($150) tariffs, but this does include unlimited data and free wifi at BTOpenzone and Cloud hotspots.

    The advantages over AT&T would appear to be the minutes (1200 - 3000), contract length (18 months not 24) and the fact you get texts (500) and unlimited data included.
     
  10. drpellypo macrumors 6502

    Joined:
    Nov 19, 2007
    Location:
    Northumberland, UK
    #10
    We get a good deal on phones, you get a good deal on fuel! I filled up today and Diesel was equivalent to $3 a litre!
     
  11. razorianfly macrumors 65816

    razorianfly

    Joined:
    Oct 16, 2007
    Location:
    Cheshire, United Kingdom
    #11
    This has *everything* to do with Apple.

    Apple chose to enter the European market with a handset which wasn't 3G capable.
    When they did, nearly 70% of the entire mobile phone industry consist of 3G-capable handsets.

    Apple made a mistake, one which it has rectified, thankfully.
    On July 11th, the iPhone will sink again, or swim.

    Europe will decide for itself if ithe iPhone 3G cuts it as a 3G phone,
    we're well used to them by now.

    R-Fly
     
  12. samab macrumors 6502a

    Joined:
    Mar 27, 2006
    #12
    AT&T's plan includes unlimited mobile to mobile minutes, 5000 nights/weekends minutes and rollover of leftover daytime minutes to future months.
     
  13. cube macrumors G5

    Joined:
    May 10, 2004
    #13
    It's not a real 3G phone. It doesn't have video call, which is one of the main features of 3G.
     
  14. BongoBanger macrumors 68000

    BongoBanger

    Joined:
    Feb 5, 2008
    #14
    Eh... not strictly true because of the revenue sharing agreement.

    LOLno.
     
  15. Phil A. Moderator

    Phil A.

    Staff Member

    Joined:
    Apr 2, 2006
    Location:
    Shropshire, UK
    #15
    I don't think there is any revenue sharing with the 3G (At least not with AT&T)
     
  16. netdog macrumors 603

    netdog

    Joined:
    Feb 6, 2006
    Location:
    London
    #16
    They don't call AT&T The Death Star for nuthin'.

    [​IMG]
     
  17. samab macrumors 6502a

    Joined:
    Mar 27, 2006
    #17
    Another mis-understanding of the 3G phone world.

    Verizon Wireless in the US has 58% of their subscribers using a 3G cell phone --- that's 39 million subscribers out of 67.2 million total subscribers.

    http://telephonyonline.com/wireless/news/verizon-data-revenues-0428/

    Vodafone's entire European operation --- which includes UK (the center of the mobile universe in Europe), Germany (the biggest country in Europe), Italy (the "highest" 3G handset penetration rate in the world) and Spain --- only 22% of the subscribers have a 3G phone (24.2 million out of 110 million subscribers). See page 10.

    http://www.vodafone.com/etc/mediali...s.Par.50962.File.dat/Prelim_ Mar_08_FINAL.pdf

    The first gen iphone didn't sell well in Europe because of the handset price and high monthly plans --- nothing to do with whether it lack 3G or not.

    A 3G feature that nobody uses.
     
  18. Michael CM1 thread starter macrumors 603

    Joined:
    Feb 4, 2008
    #18
    But considering we're much more skilled at wasting fuel, that whole thing is a wash. :)

    $3/litre is about $5-6/gallon, right? If so, we're catching up. Just paid $3.95/gallon.
     
  19. cube macrumors G5

    Joined:
    May 10, 2004
    #19
    You catch up because oil goes up when the dollar goes down.
     
  20. drpellypo macrumors 6502

    Joined:
    Nov 19, 2007
    Location:
    Northumberland, UK
    #20
    lol - no! There are 4 litres in our gallon. So that's $12 per gallon.
     
  21. BongoBanger macrumors 68000

    BongoBanger

    Joined:
    Feb 5, 2008
    #21
    Nope, which is why it won't disappoint this time.
     
  22. robbieduncan Moderator emeritus

    robbieduncan

    Joined:
    Jul 24, 2002
    Location:
    London
    #22
    Yes, but they are buying US gallons so you have to convert to US gallons. There are 3.785 litres per US gallon, 4.546 litres per UK gallon.

    So $3 per litre is over $11 per (US) gallon, not the laughable $5-6 suggested above.
     
  23. JBaker122586 macrumors 65816

    Joined:
    Jun 21, 2007
    #23
    When I said "this has nothing to do with Apple," I meant the price being free after subsidy. Directly, Apple doesn't control that at all. Maybe Apple's poor business plan in Europe led to T-Mobile and O2 giving free iPhone with contracts, but Apple's not trying to compete by giving iPhones away, O2 is.
     
  24. secretbum macrumors newbie

    secretbum

    Joined:
    Jun 10, 2008
    #24
    United States has cheap fuel.In Australia Diesel is over $6 US/gallon.
     
  25. paduck macrumors 6502

    Joined:
    Jul 5, 2007
    #25
    Believe it or not, the US is not the world leader in cellular phones. We actually follow the rest of the world. Europe, in particular the UK, has the most competitive telecommunications market in the world. In this case, Europe is benefiting from greater competition than the US. They can call here cheaper than we can call into the next state. Calling to the US on an O2 Pay and Go plan can cost as little at 15 pence/minute (30 cents, but the math isn't as simple as that, you are better off thinking that the pound has the same buying power as the dollar). International texts are 10 pence each. Part of this is that their network deployment costs are dramatically lower than in the US, but part of it is also that landlines are VERY expensive in Europe (used to be controlled by the Post Office as a government service), they charge for local calls, and (very important, I think) the caller pays for all costs associated with a call. This is all the more confusing with the higher minute offers in Europe, since those minutes only apply to outgoing calls - not incoming ones.
     

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