Tesco Mobile passes 400,000 Customers and finally adds 4G
Forcing customers to wait several months to access a new technology is unfavourable, but leaving them with an archaic technology and in the dark for five years is outright embarrassing.
Published 30/08/18
The media has been awash with the hype surrounding the incoming tide of 5G devices and networks next year, a technology that will propel our mobile experience to new heights. However, for some poor customers, they still await the arrival of 4G and the vast array of benefits which it has introduced.
Finally, in autumn of 2018, Tesco Mobile is activating 4G across its mobile plans for new and existing customers. The company is almost five years late to the 4G party and has left its pitiable customers to make use of archaic 3G speeds in an era where fast access to the Internet is critical for everyday life.
It's pretty obvious that the company likes to flaunt a statement claiming it is the most recommended mobile network in Ireland. But, up until this point in time, recommending someone to use a 3G network crippled by congestion was outright absurd, regardless of how great the value was. It would be delusional for a network such as Tesco Mobile to believe that forcing customers to wait five years for 4G was just, and I hope, on behalf of Tesco Mobile's customers, that the same ridiculous delay does not occur with 5G.
With 4G now available on Tesco Mobile, and the company announcing the passing of over 400,000 customers, we need to look at this MVNO, the largest of its kind here, in a renewed light. In short, the introduction of 4G changes everything, and instantly makes Tesco Mobile a significantly more compelling network to choose.
Finally, in autumn of 2018, Tesco Mobile is activating 4G across its mobile plans for new and existing customers. The company is almost five years late to the 4G party and has left its pitiable customers to make use of archaic 3G speeds in an era where fast access to the Internet is critical for everyday life.
It's pretty obvious that the company likes to flaunt a statement claiming it is the most recommended mobile network in Ireland. But, up until this point in time, recommending someone to use a 3G network crippled by congestion was outright absurd, regardless of how great the value was. It would be delusional for a network such as Tesco Mobile to believe that forcing customers to wait five years for 4G was just, and I hope, on behalf of Tesco Mobile's customers, that the same ridiculous delay does not occur with 5G.
With 4G now available on Tesco Mobile, and the company announcing the passing of over 400,000 customers, we need to look at this MVNO, the largest of its kind here, in a renewed light. In short, the introduction of 4G changes everything, and instantly makes Tesco Mobile a significantly more compelling network to choose.
How has Tesco Mobile become the largest MVNO?
Tesco Mobile has obviously done something right, the company has succeeded where many of its competitors have failed. The telecoms business is fiercely competitive in Ireland and gaining a substantial market share, as Tesco Mobile has amassed, is incredibly difficult.
Just look at Dixon's failed attempt to enter the MVNO market here with iD Mobile, a network which tried to attract customers by offering large data allowances and flexible plans. Even with its large retail presence within Carphone Warehouse's stores, iD Mobile was unable to attract customers, shutting up shop earlier this year. What does tell us? It's a lesson for MVNOs that merely offering great value is simply not enough to attract a huge number of customers, there must be other incentives. Furthermore, it tells us that consumers do not like change, they will be reluctant to switch to a new network if they are unfamiliar with the brand.
That last point is the fundamental reason for Tesco Mobile's success. Being one of the largest supermarket chains in Ireland, the Tesco brand is widely recognised and trusted. Thousands of products are purchased from Tesco every single day, people are comfortable with Tesco's brand. The same can be said for Tesco Mobile, when people learned that their supermarket store, which they may travel to every day, began offering a mobile network, it would have provoked them to investigate.
In fact, Tesco has strategically positioned its Tesco Mobile division within physical stores to maximise the number of eyeballs that the brand receives. This means the mobile section will be placed away from the entrance and close to the middle of stores. People are given the opportunity to browse devices which are on display and learn of the plans which the company is offering. Here it is in a nutshell: Tesco Mobile does not require consumers to trek to another store, it exists within the stores that they already commute to for their groceries.
Beyond this, the company has cleverly integrated the supermarket's "Clubcard" loyalty programme into its mobile plans. Tesco Mobile customers receive "Clubcard points" for every euro that they spend topping up or paying their bill. These points can later be redeemed for discounts with their mobile plan or for shopping in Tesco. I really think it is an ingenious system which the company has executed very well. This encourages people to stick with Tesco for shopping and their mobile plan, lowering churn rates and hence boosting customer loyalty.
Tesco Mobile's unique approach to international calling, a major point of contention at the time of the company's formation because of a lack of free services such as Whatsapp, allowed it to attract customers seeking an affordable method of contacting their relatives abroad. Famously, Tesco Mobile advertised the ability to call internationally for as little as one cent per minute, an unparalleled price for a mobile network.
The combination of gaining "Clubcard points" for every euro you spend on your plan, being able to contact anyone in the world for mere pennies and having access to a huge number of retail locations within existing Tesco stores have proven to be an excellent recipe for success. These three unique selling points have allowed the company to excel, even as its competitors choked.
Just look at Dixon's failed attempt to enter the MVNO market here with iD Mobile, a network which tried to attract customers by offering large data allowances and flexible plans. Even with its large retail presence within Carphone Warehouse's stores, iD Mobile was unable to attract customers, shutting up shop earlier this year. What does tell us? It's a lesson for MVNOs that merely offering great value is simply not enough to attract a huge number of customers, there must be other incentives. Furthermore, it tells us that consumers do not like change, they will be reluctant to switch to a new network if they are unfamiliar with the brand.
That last point is the fundamental reason for Tesco Mobile's success. Being one of the largest supermarket chains in Ireland, the Tesco brand is widely recognised and trusted. Thousands of products are purchased from Tesco every single day, people are comfortable with Tesco's brand. The same can be said for Tesco Mobile, when people learned that their supermarket store, which they may travel to every day, began offering a mobile network, it would have provoked them to investigate.
In fact, Tesco has strategically positioned its Tesco Mobile division within physical stores to maximise the number of eyeballs that the brand receives. This means the mobile section will be placed away from the entrance and close to the middle of stores. People are given the opportunity to browse devices which are on display and learn of the plans which the company is offering. Here it is in a nutshell: Tesco Mobile does not require consumers to trek to another store, it exists within the stores that they already commute to for their groceries.
Beyond this, the company has cleverly integrated the supermarket's "Clubcard" loyalty programme into its mobile plans. Tesco Mobile customers receive "Clubcard points" for every euro that they spend topping up or paying their bill. These points can later be redeemed for discounts with their mobile plan or for shopping in Tesco. I really think it is an ingenious system which the company has executed very well. This encourages people to stick with Tesco for shopping and their mobile plan, lowering churn rates and hence boosting customer loyalty.
Tesco Mobile's unique approach to international calling, a major point of contention at the time of the company's formation because of a lack of free services such as Whatsapp, allowed it to attract customers seeking an affordable method of contacting their relatives abroad. Famously, Tesco Mobile advertised the ability to call internationally for as little as one cent per minute, an unparalleled price for a mobile network.
The combination of gaining "Clubcard points" for every euro you spend on your plan, being able to contact anyone in the world for mere pennies and having access to a huge number of retail locations within existing Tesco stores have proven to be an excellent recipe for success. These three unique selling points have allowed the company to excel, even as its competitors choked.
Simplicity and Value are Key
A simplistic approach to mobile plans is key to appeal to a wider audience of consumers. Tesco Mobile priorities simplicity throughout its portfolio of bill pay and pay as you go plans. There are no price hikes after a certain number of months hidden in the T&Cs, something that isn't the case with other networks such as eir. Furthermore, the company draws a hard line between its bill pay and bill pay sim only plans. Vodafone has initiated a worrisome trend with its bill pay sim only plans by locking you to the company for twelve months. Tesco Mobile has heeded the fact that a sim only plan should run on a rolling thirty-day contract.
Of course, we were going to speak about value in this article, its what consumers are on the lookout for. Tesco Mobile has shown time and time again that its plans offer great value. And great value doesn't just mean great prices, it also includes a combination of great data, call, text and roaming allowances. Here's something for you to think about, Tesco Mobile's most expensive bill pay plan costs €50 monthly, whereas Vodafone's plan tops €80 monthly. The sheer value that the company offers has obviously been enough for many consumers to switch.
Of course, we were going to speak about value in this article, its what consumers are on the lookout for. Tesco Mobile has shown time and time again that its plans offer great value. And great value doesn't just mean great prices, it also includes a combination of great data, call, text and roaming allowances. Here's something for you to think about, Tesco Mobile's most expensive bill pay plan costs €50 monthly, whereas Vodafone's plan tops €80 monthly. The sheer value that the company offers has obviously been enough for many consumers to switch.
The Drawbacks of choosing an MVNO
Credit: Continuum
There will always be several drawbacks to choosing an MVNO over a mobile network such as Three or Vodafone. For one, as mobile networks are larger companies, they tend to offer more developed services such as superior customer care and loyalty programmes. As I've explained earlier, this is the case with Vodafone and Three, both companies which reward their customers with a huge number of freebies and discounts. It is much more difficult for a smaller company to achieve a similar feat, simply because it is only sustainable to do so if there is a large customer base.
However, the most substantial difference between an MVNO and a mobile network operator is the number of services that they offer. Vodafone and eir are total communications providers, providing mobile, broadband, TV and landline to customers. The same cannot be said for Tesco Mobile, which only provides mobile services. Even Three, who is just a mobile network, provides other services such as mobile broadband and business landlines. Having the ability to bundle services, for example, bringing mobile and broadband under one unified bill from Vodafone, allows consumers to avail of huge discounts in many cases. You cannot bundle services with Tesco Mobile, meaning you will miss out on these dual-play discounts found with other companies. This will be a huge deterrent for many consumers, and could possibly erode any cost savings that choosing Tesco Mobile would create.
After reading the introduction to this article, you should be pretty familiar with the concept that MVNOs don't prioritise giving their customers access to the latest technologies, 4G five years late explains this. For many of you, including myself, not being able to access the latest and greatest wireless technologies is a pain, especially when we are paying for the service. While this isn't explicitly explained, network reports from other countries generally find that download speeds with MVNOs tend to be lower than those achieved if you are using the same service from the bigger mobile network. Perhaps, systematic network deprioritization is the culprit for this? Whatever the case, expect to enjoy an overall better network experience with a mobile network, not with an MVNO.
Finally, there is the more subjective topic that I need to discuss. That topic relates to the way that your money is used every time you pay for your plan. With most MVNOs, your money is not being used to finance network expansion and improvement because they do not own the RAN. To be frank, I would prefer to give my money to a network such as Three or Vodafone, because your money will contribute, in some small way, to improve the network. Now, of course, MVNOs must pay mobile providers for access to their network, but it simply isn't the same as what I've mentioned above. Things are a little more ambiguous in this particular case because Tesco Mobile is a joint venture between Tesco Ireland and Three's owner, CK Hutchison Holdings Limited, so it can be assumed that the profits from the MVNO are shared between the shareholders. Tesco Mobile will become a wholly owned Tesco subsidiary when the company buys Three's share.
However, the most substantial difference between an MVNO and a mobile network operator is the number of services that they offer. Vodafone and eir are total communications providers, providing mobile, broadband, TV and landline to customers. The same cannot be said for Tesco Mobile, which only provides mobile services. Even Three, who is just a mobile network, provides other services such as mobile broadband and business landlines. Having the ability to bundle services, for example, bringing mobile and broadband under one unified bill from Vodafone, allows consumers to avail of huge discounts in many cases. You cannot bundle services with Tesco Mobile, meaning you will miss out on these dual-play discounts found with other companies. This will be a huge deterrent for many consumers, and could possibly erode any cost savings that choosing Tesco Mobile would create.
After reading the introduction to this article, you should be pretty familiar with the concept that MVNOs don't prioritise giving their customers access to the latest technologies, 4G five years late explains this. For many of you, including myself, not being able to access the latest and greatest wireless technologies is a pain, especially when we are paying for the service. While this isn't explicitly explained, network reports from other countries generally find that download speeds with MVNOs tend to be lower than those achieved if you are using the same service from the bigger mobile network. Perhaps, systematic network deprioritization is the culprit for this? Whatever the case, expect to enjoy an overall better network experience with a mobile network, not with an MVNO.
Finally, there is the more subjective topic that I need to discuss. That topic relates to the way that your money is used every time you pay for your plan. With most MVNOs, your money is not being used to finance network expansion and improvement because they do not own the RAN. To be frank, I would prefer to give my money to a network such as Three or Vodafone, because your money will contribute, in some small way, to improve the network. Now, of course, MVNOs must pay mobile providers for access to their network, but it simply isn't the same as what I've mentioned above. Things are a little more ambiguous in this particular case because Tesco Mobile is a joint venture between Tesco Ireland and Three's owner, CK Hutchison Holdings Limited, so it can be assumed that the profits from the MVNO are shared between the shareholders. Tesco Mobile will become a wholly owned Tesco subsidiary when the company buys Three's share.
Conclusion: One of few Flourishing MVNOs
Credit: The Irish Times
Tesco Mobile has succeeded where others haven't, and the company deserves some serious praise for this. One must look at a combination of a company's successes and failures to gain a greater insight into its performance. With Tesco Mobile, forcing customers to wait an excruciatingly long time (almost five years) to access 4G, a technology that is practically entrenched in our society in 2018, stands out as a major failure.
But, beyond this, there aren't many other flaws to report. Sure, there is the occasional drawback such as a lack of dual, triple or quad-play bundles, but 400,000 consumers clearly believe that the benefits outweigh the flaws. And in my view, its quite difficult to pinpoint another MVNO that offers better customer care, a superior loyalty programme or overall higher value.
Tesco Mobile is truly in a league of its own as an MVNO in Ireland. The company's closest competitor, Virgin Mobile, boasts just 60,000 customers. The strategic positioning of Tesco Mobile's stores within existing Tesco supermarkets, the clever implementation of the company's "Clubcard point" system with its mobile plans, the phenomenally priced plans and international calling rates intertwine with one another to create a truly great customer experience.
But, beyond this, there aren't many other flaws to report. Sure, there is the occasional drawback such as a lack of dual, triple or quad-play bundles, but 400,000 consumers clearly believe that the benefits outweigh the flaws. And in my view, its quite difficult to pinpoint another MVNO that offers better customer care, a superior loyalty programme or overall higher value.
Tesco Mobile is truly in a league of its own as an MVNO in Ireland. The company's closest competitor, Virgin Mobile, boasts just 60,000 customers. The strategic positioning of Tesco Mobile's stores within existing Tesco supermarkets, the clever implementation of the company's "Clubcard point" system with its mobile plans, the phenomenally priced plans and international calling rates intertwine with one another to create a truly great customer experience.
Virgin Media: The Company that changed how we think about Broadband in IrelandWith the acquisition of TV3, development of an ultra-competitive MVNO and rapid expansion of its broadband network, Virgin Media is solidifying its presence in the Irish telecommunications market.
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