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Why are CPW cheaper than 02 themselves ?


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Old 20-04-2014, 17:19
klendathu
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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 .
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Old 20-04-2014, 17:22
jabbamk1
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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.
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Old 20-04-2014, 17:28
Three
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Removed, don't want to cause confusion.
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Old 20-04-2014, 17:30
jabbamk1
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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.
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Old 20-04-2014, 17:34
Three
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Okay, thanks.
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Old 20-04-2014, 17:35
klendathu
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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
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Old 20-04-2014, 17:36
Three
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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?
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Old 20-04-2014, 17:42
klendathu
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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 ?
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Old 20-04-2014, 17:47
Three
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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.
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Old 20-04-2014, 17:50
jabbamk1
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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?
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Old 20-04-2014, 17:51
klendathu
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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
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Old 20-04-2014, 17:52
jabbamk1
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With tea AND biscuits
I envy you...
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Old 20-04-2014, 23:29
qasdfdsaq
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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.
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Old 21-04-2014, 08:26
davethorp
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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
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Old 21-04-2014, 09:50
qasdfdsaq
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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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