Why are CPW cheaper than 02 themselves ?

klendathu · 20-04-2014, 17:19

The Carphone Warehouse are offering an iPhone 5s 16gb , with 5gb 4g data, for £38 a month on 02 with nothing upfront

O2 themselves have the exact same deal but at cost of £49 for the phone upfront .

Why is this ?

As far as I can tell it's identical .

jabbamk1 · 20-04-2014, 17:22

Reason 1-
O2 run their own network and have lots of costs associated to that. CPW do not

Reason 2-
CPW buy their phones from their own supplier and O2 buy their phones from their own supplier

Reason 3-
O2 pay CPW a commission to sell their tariffs. (So CPW can give this back to the customer)

Reason 4-
CPW have the flexibility to increase/decrease tariff costs.

Three · 20-04-2014, 17:28

Removed, don't want to cause confusion.

jabbamk1 · 20-04-2014, 17:30

Quote:

Originally Posted by Three

So CPW don't simply sell O2 packages, they purchase wholesale and sell their own packages at their own prices?

Oh crap. Ignore that. Was thinking of MVNO's.

But the bit about CPW being able to set their own pricing applies.

Three · 20-04-2014, 17:34

Okay, thanks.

klendathu · 20-04-2014, 17:35

I would expect this to happen in reverse to be honest .

Anyway , due to work reasons I'm going to have to join the world of Apple .

Which I'm not too pleased about from a financial point of view

Three · 20-04-2014, 17:36

Quote:

Originally Posted by klendathu

I would expect this to happen in reverse to be honest .

Anyway , due to work reasons I'm going to have to join the world of Apple .

Which I'm not too pleased about from a financial point of view

Your employer requires you to use Apple devices at your own cost?

klendathu · 20-04-2014, 17:42

Quote:

Originally Posted by Three

Your employer requires you to use Apple devices at your own cost?

This is true .

I work for a Freight train company, and the drivers use iPads in a cradle in the locos .

They use an App called Kitbag and an app called TAS .

So long story short, I've got to whip my phone out and see what they're seeing .

Good news is I get paid more to relocate but the phone is up to me till I pass out training

Anyone wanna buy a Nexus 5 ?

Three · 20-04-2014, 17:47

Quote:

Originally Posted by klendathu

This is true .

I work for a Freight train company, and the drivers use iPads in a cradle in the locos .

They use an App called Kitbag and an app called TAS .

So long story short, I've got to whip my phone out and see what they're seeing .

Good news is I get paid more to relocate but the phone is up to me till I pass out training

Anyone wanna buy a Nexus 5 ?

Wow, you're trusted to use mobile devices in the cab? I'd heard that drivers risk tea with no biscuits if they're caught using something like a mobile device.

jabbamk1 · 20-04-2014, 17:50

Quote:

Originally Posted by Three

Wow, you're trusted to use mobile devices in the cab? I'd heard that drivers risk tea with no biscuits if they're caught using something like a mobile device.

I'm guessing this is whilst he's not driving.

Right?

klendathu · 20-04-2014, 17:51

Quote:

Originally Posted by Three

Wow, you're trusted to use mobile devices in the cab? I'd heard that drivers risk tea with no biscuits if they're caught using something like a mobile device.

No I'm not in a cab .

I'm in the control office answering their phone calls .

With tea AND biscuits

jabbamk1 · 20-04-2014, 17:52

Quote:

Originally Posted by klendathu

With tea AND biscuits

I envy you...

qasdfdsaq · 20-04-2014, 23:29

Quote:

Originally Posted by klendathu

The Carphone Warehouse are offering an iPhone 5s 16gb , with 5gb 4g data, for £38 a month on 02 with nothing upfront

O2 themselves have the exact same deal but at cost of £49 for the phone upfront .

Why is this ?

As far as I can tell it's identical .

This is pretty normal for all networks and has been for a long time. Networks' pay CPW commission and CPW operate on lower profit margins.

davethorp · 21-04-2014, 08:26

The O2 deal will likely also be on refresh which allows you to pay off your phone and upgrade or leave at any time. Also O2's compulsory price rises for all (bar sim only and PAYG) only affect the airtime element of a refresh tariff so the price rise will be less

3rd party contracts are just on a standard tariff which doesn't allow you to pay off the phone (you have to pay off the whole price plan minus VAT) and on which the compulsory prices rises for all apply to the whole tariff

qasdfdsaq · 21-04-2014, 09:50

It's also true that networks often launch "special" tariffs - as in unique - as available direct from the operator only. Examples include O2 refresh as mentioned above, EE's variable and sharer plans, 3's One Plan, etc.

20-04-2014, 17:19	#1
klendathu Forum Member Join Date: Feb 2012 Posts: 10,726	Why are CPW cheaper than 02 themselves ? The Carphone Warehouse are offering an iPhone 5s 16gb , with 5gb 4g data, for £38 a month on 02 with nothing upfront O2 themselves have the exact same deal but at cost of £49 for the phone upfront . Why is this ? As far as I can tell it's identical .

20-04-2014, 17:22	#2
jabbamk1 Forum Member Join Date: Jan 2012 Location: London, UK Posts: 8,759	Reason 1- O2 run their own network and have lots of costs associated to that. CPW do not Reason 2- CPW buy their phones from their own supplier and O2 buy their phones from their own supplier Reason 3- O2 pay CPW a commission to sell their tariffs. (So CPW can give this back to the customer) Reason 4- CPW have the flexibility to increase/decrease tariff costs.

20-04-2014, 17:28	#3
Three Forum Member Join Date: Jul 2013 Location: Manchester Posts: 1,114	Removed, don't want to cause confusion.

20-04-2014, 17:30	#4
jabbamk1 Forum Member Join Date: Jan 2012 Location: London, UK Posts: 8,759	Quote: Originally Posted by Three So CPW don't simply sell O2 packages, they purchase wholesale and sell their own packages at their own prices? Oh crap. Ignore that. Was thinking of MVNO's. But the bit about CPW being able to set their own pricing applies.

20-04-2014, 17:34	#5
Three Forum Member Join Date: Jul 2013 Location: Manchester Posts: 1,114	Okay, thanks.

20-04-2014, 17:35	#6
klendathu Forum Member Join Date: Feb 2012 Posts: 10,726	I would expect this to happen in reverse to be honest . Anyway , due to work reasons I'm going to have to join the world of Apple . Which I'm not too pleased about from a financial point of view

20-04-2014, 17:36	#7
Three Forum Member Join Date: Jul 2013 Location: Manchester Posts: 1,114	Quote: Originally Posted by klendathu I would expect this to happen in reverse to be honest . Anyway , due to work reasons I'm going to have to join the world of Apple . Which I'm not too pleased about from a financial point of view Your employer requires you to use Apple devices at your own cost?

20-04-2014, 17:42	#8
klendathu Forum Member Join Date: Feb 2012 Posts: 10,726	Quote: Originally Posted by Three Your employer requires you to use Apple devices at your own cost? This is true . I work for a Freight train company, and the drivers use iPads in a cradle in the locos . They use an App called Kitbag and an app called TAS . So long story short, I've got to whip my phone out and see what they're seeing . Good news is I get paid more to relocate but the phone is up to me till I pass out training Anyone wanna buy a Nexus 5 ?

20-04-2014, 17:47	#9
Three Forum Member Join Date: Jul 2013 Location: Manchester Posts: 1,114	Quote: Originally Posted by klendathu This is true . I work for a Freight train company, and the drivers use iPads in a cradle in the locos . They use an App called Kitbag and an app called TAS . So long story short, I've got to whip my phone out and see what they're seeing . Good news is I get paid more to relocate but the phone is up to me till I pass out training Anyone wanna buy a Nexus 5 ? Wow, you're trusted to use mobile devices in the cab? I'd heard that drivers risk tea with no biscuits if they're caught using something like a mobile device.

20-04-2014, 17:50	#10
jabbamk1 Forum Member Join Date: Jan 2012 Location: London, UK Posts: 8,759	Quote: Originally Posted by Three Wow, you're trusted to use mobile devices in the cab? I'd heard that drivers risk tea with no biscuits if they're caught using something like a mobile device. I'm guessing this is whilst he's not driving. Right?

20-04-2014, 17:51	#11
klendathu Forum Member Join Date: Feb 2012 Posts: 10,726	Quote: Originally Posted by Three Wow, you're trusted to use mobile devices in the cab? I'd heard that drivers risk tea with no biscuits if they're caught using something like a mobile device. No I'm not in a cab . I'm in the control office answering their phone calls . With tea AND biscuits

20-04-2014, 17:52	#12
jabbamk1 Forum Member Join Date: Jan 2012 Location: London, UK Posts: 8,759	Quote: Originally Posted by klendathu With tea AND biscuits I envy you...

20-04-2014, 23:29	#13
qasdfdsaq Inactive Member Join Date: Jan 2007 Posts: 3,286	Quote: Originally Posted by klendathu The Carphone Warehouse are offering an iPhone 5s 16gb , with 5gb 4g data, for £38 a month on 02 with nothing upfront O2 themselves have the exact same deal but at cost of £49 for the phone upfront . Why is this ? As far as I can tell it's identical . This is pretty normal for all networks and has been for a long time. Networks' pay CPW commission and CPW operate on lower profit margins.

21-04-2014, 08:26	#14
davethorp Forum Member Join Date: Mar 2007 Location: Preston, Lancashire Posts: 7,255	The O2 deal will likely also be on refresh which allows you to pay off your phone and upgrade or leave at any time. Also O2's compulsory price rises for all (bar sim only and PAYG) only affect the airtime element of a refresh tariff so the price rise will be less 3rd party contracts are just on a standard tariff which doesn't allow you to pay off the phone (you have to pay off the whole price plan minus VAT) and on which the compulsory prices rises for all apply to the whole tariff

21-04-2014, 09:50	#15
qasdfdsaq Inactive Member Join Date: Jan 2007 Posts: 3,286	It's also true that networks often launch "special" tariffs - as in unique - as available direct from the operator only. Examples include O2 refresh as mentioned above, EE's variable and sharer plans, 3's One Plan, etc.

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Why are CPW cheaper than 02 themselves ?