Comments on: Is A Free Handset Worth 2 Year Commitment For A Postpaid Line?

By: Osman Mumtaz

Osman Mumtaz — Wed, 26 Nov 2008 03:49:42 +0000

Tahir, I agree and that is why I am seriously considering this Ufone-HBL plan. When I see other telcos plans, I can’t find such low rates or stylish phones. Zong gives a free toy (because it can not be called a phone on any planet) and Ufone gives free minutes with RBS but no phone. Even on a per minute rate, Ufone and HBL credit card deal is better and the phones offered are definitely the icing on the cake.

As Jamal says, the issue is the 2 years contract! If they had allowed me to upgrade every year, it would’ve been a perfect deal.

I like the fact that there is a flat bill every month that will be a part of my credit card’s bill because it’s such a pain to pay my phone bill and also avoid blocking. I won’t have to run to my service provider to pay my bill anymore.

By: Tahir

Tahir — Mon, 17 Nov 2008 12:19:42 +0000

I agree with Babar that Ufone has taken this service perhaps straight out of the playbook of a US telecom company but then isn’t this how handsets are being offered in UK and Europe and elsewhere in the world as well? The offer would have been better had it involved the line rent of 1 year only just like the norm in other countries. However, a credit check is mandatory even abroad and considering the mindset of us Pakistanis a credit card looks a better way of making people pay the dues every month instead of running away with the handsets.
I personally applied for a HBL credit card and ufone’s handset offer a week back..all formalities were completed and i got a handset yesterday (Samsung M620) and mashallah i am very happy with it.
Just give this offer another thought…you pay 999 per month (package 2) and you get 1000 minutes free (Ufone to ufone) and 100 SMS free to any network. on top of that calling rates to both ufone and other operators are way too cheap..Rs 0.35 and Rs 0.90 respectively..calling ptcl numbers nationwide is cheap as well Rs 0.65..and ON top of that you get free missed call alert service, phone book saver service and 1000 ufone reward points..PLUS YOU GET A FREE HANDSET…:)
i think the offer is good..i have only issues with 2yrs contract..1yr contract would have been great.

By: Jamal Ahmad

Jamal Ahmad — Thu, 06 Nov 2008 11:34:11 +0000

I agree with you Babar. The major portion of the users here are youngsters and most if not all use prepaid connections. I would assume that their would be 5-10% post paid users overall. So this offer is flawed to start with.

By: Babar

Babar — Sun, 02 Nov 2008 22:21:00 +0000

Good points Jamal. Zong offers a package where you can get a handset and 6 months of service for 2K Rs. Warid has started a similar offer. In my opinion, these kind of phone sim minutes no-contract needed packages make more sense for an emerging telecom market like Pakistan. There might be a very small number of people who like instant gratification and may want to try the 2-yr contract just to get a nice handset. I do not think that this will be popular with the main public.

By: Jamal Ahmad

Jamal Ahmad — Sun, 02 Nov 2008 14:10:26 +0000

Salman,

Being from the IT Services industry, I am aware of the profits of telcos and fianancials and by looking at their IT budgets, I can safely say they are certainly not ’slim’.

Mobilink offers subsidized Blackberrys to its customers don’t they. Why can’t others do something on those lines? We wont be having so much competition in telco if it weren’t for the huge customer base. People change their handsets VERY option in Pakistan. I remember when in UK I used to wait till the end of my contract for a FREE upgrade to a newer phone. People don’t wait around here in Pakistan. If theres something new and exciting and they’ve got the doh, they’ll get it. Why the telcos are not tapping on this huge opportunity is beyond me. They would easily do some sort of a venture with a handset manufacturer and provide subsidized sets. I would not mind topping up on a regular basis if I can get a new handset 10-20% below market price. But being tied to a two year contract would be a bit much. I might consider if the contract was of a lesser duration for instance 12 months.

Another thing to mention here is that airtime is cheap here and don’t forget that telcos pay per second and charge by the minute on most if not all of their call options.

By: Muhammed Salman

Muhammed Salman — Sun, 02 Nov 2008 10:53:26 +0000

Jamal,

The profit margin for telco’s in this region is quite slim, also on the other hand western markets are much more developed in terms of infrastructure and organizational maturity. Here the operators are still trying to get even on there investments, plus the ever need to catch up with the new and upcoming technology has made things even more difficult for operators in the local market.

In my opinion asking for flashy insentives for just signing up for a contract will be pushing the limits… especially in these tuff times when operator costs are at their all time high due to fuel, financing costs and other issues on the horizon.

By: Jamal Ahmad

Jamal Ahmad — Sat, 01 Nov 2008 16:13:29 +0000

I would be very interested in finding out how one can get out of a contract. How much would one have to pay as penalty for early termination? Would they let me keep the phone if I change my mind and end the contract after couple of months? I would not even consider this offer until I have some solid answers.

In Europe and America, banks and telcos offer huge incentives to new customers. I’ve seen ppl get free LCD TVs just for signing up for a new credit card! Maybe its time the financials institutions and telcos dish out some better offers here in Pakistan as well.