In a move to simplify its range of plans, the operator is also ditching some popular tariff options in November
O2 Germany is overhauling its tariff portfolio on 6 November in a move the carrier said will position it as a “price-performance leader” in the German market. With the new mobile contract portfolio, the number of tariffs at O2 will be reduced to six from the previous eleven. The tariffs each receive higher data packages, as well as an unchanged free additional 1 to 10GB per month per year as part of the telco’s “Grow advantage” which increases data volumes after a year to encourage customer loyalty.
However, the telco is also removing two popular unlimited tariffs and has removed its Boost option tariffs from being price inclusive – these options included more data and additional SIM cards. For example, O2’s Boost Connect, which let users spread the tariff over up to ten SIM cards will now be a paid for extra.
The operator’s entry level packages o2 Mobile Unlimited Basic and Smart do come with unlimited mobile data but now at a reduced speed. Instead, heavy internet users will be encouraged to take up the more expensive Unlimited Max for unthrottled speeds or Unlimited On Demand, where data volumes have to be chosen manually. O2’s Unlimited Smart plan, offering 15 Mbps for €40, is also being discontinued.
O2’s six new tariffs will comprise two flat-rate tariffs for unlimited data and four regular tariffs with volume coming at S, M, L and XL levels. The flat rate tariffs (Unlimited Max and Unlimited On Demand) will start at around €60 per month. The new O2 Mobile Portfolio starts with the entry-level tariff O2 Mobile S with 10GB of data volume and goes up to the O2 Mobile XL with 300GB.
The operator’s tariff shake-up comes at a time when 1&1 launched its own unlimited tariffs with various speeds but that also follow a similar formula to O2. Their unlimited starts at €9 per month for six months to get its Unlimited S bundle but it comes with a paltry 5Mbps which will be somewhat useless for streaming. One potential annoyance for users on 1&1’s S/M/L packages is that they come with 100GB per month automatically available to start with. Once this volume has been used up, users will need to book additional data volume in 5 GB increments in the 1&1 Control Center, unlimited and free of charge.
The connection is implemented via 1&1’s own network and supported by national roaming via the Vodafone network. This is interesting as O2 is the only operator currently offering tiered unlimited tariffs meaning some users attracted to Vodafone’s network reach may be attracted to this bundle.
No hidden increases
O2 still reckons its new bundles are competitive and when first announced, the operator was keen to stress that users a looking for pricing that was more transparent and without hidden price increases or additional costs.
“Our aim is to become the most customer-friendly provider in the German telecommunications market. With our simplified O2 Mobile portfolio, we are clearing the tariff jungle and offering O2 customers more service at an excellent price-performance ratio,” said O2 Telefónica private customers board member Andreas Laukenmann (above).
“Thanks to the combination advantage, customers also receive an attractive offer for their home internet. This means they can organise their digital life fairly and conveniently from a single source. We expect our simplified O2 Mobile portfolio to provide additional growth impulses for our core brand O2,” he added.
Young and old
With its new portfolio, O2 is putting together special packages for young people (up to 29 years of age) who will receive a price advantage of up to €20 and double the data volume on all tariffs up to Mobile L. The special young people advantage also applies in combination with hardware bundles. For customers aged 60 and over, there is also a one-off price advantage of up to €20 on the tariff in the German market and an additional service and security package that includes O2 online protection and use of the helpline.
O2 is also optimising its portfolio for the self-employed and small business owners (small office/home office up to 10 employees/SoHo). In addition to the already included SoHo benefits, such as exclusive services (express hotline, free device exchange service) and the Swiss roaming pack, SoHos now also receive 120 inclusive minutes from Germany to the EU and other countries, such as the US and Turkey.
With the O2 “combo advantage”, existing customers also benefit from a 50 percent price advantage on the monthly price from the second O2 Mobile tariff. In order to cover all telecommunications needs, O2 customers also save up to €5 a month on landline offers – regardless of whether they use VDSL, fibre or cable. The operator said another change to this combo advantage will come at the end of the year, as it will be increased again from €5 to €10.