Tesco’s Unlimited Texting deal is Taking on the Industry

How low should people have to pay for a single mobile phone service? There are actually specific and significantly large portions of the market that are focused mainly on a very limited number of services to be used from mobile phone networks –like texting, that network operators should be catering to. While no other company has followed suit, it is hard to imagine that Tesco’s pioneering will remain a solo act for a long time.

The mobile network operator is offering a SIM only deal that is bound to attract plenty of new users: a 6 pound monthly tariff with about 100 minutes of voice calls and unlimited texting. While most professionals and adults would probably want to sign up for something more substantial (such as more call minutes and some data), the deal is perfect for teens.

Many teenagers send over a hundred text messages per day, and hardly make use of the call minutes that are included in their packages. While data access is important, most would rather connect to a free WiFi hotspot rather than to spend on 3G connectivity. With that said, Tesco’s offer is pretty much perfect.

Other networks will certainly have a tough time competing with this deal unless they offer something similar. While it certainly will not get most people to switch, many younger users are likely to take up the Tesco subscription as it offers exactly what they need and nothing more.

Of course, this is a bit of a cause for concern. While the practice has given a network operator a niche market to work with, it is also a reflection of the new communication practices and patterns of the younger generation. Texting is both accurate and convenient, but it also takes out the human element of socialization, and reliance on the tool is certainly going to be a major hurdle for the future.

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