Originally Posted by Everything Goes:
“Three are no longer aiming to be a value for money network. The problem is people might go else where. Now Three can look at it as a way of getting rid of low value customers and those pesky bandwidth hogs. If you are paying a premium price you might as well go to EE which some forum member have said they will do. Whilst this forum is no way representative of the general public it certainly shows that people will shop around. I do feel that Three customers are more likely to look else where if they no longer feel they are getting good value.”
Lets look at what's happened in the market:-
giffgaff stamped down heavy on it's unlimited deal moving it to 10-15GB and then you got banned from buying more unlimited data, at the same time the price has gone up from £10, then to £12, then to £18 and from March £20. All the Giffgaff threads were saying "I'm going to Three, blah blah".
Three need double the amount of capacity next year, and with the expectation that speeds will increase through expanded 4G and that was never going to happen with users using 100-300GB a month for £15 on a discount deal and paying £12. As stated on O2 or Vodafone that would be making tens of thousands of pounds of annual revenue coming in from 150+ customers for the
same usage as the single heavy user like Jack using 300GB a month tethering on Three.
Either HWL will buy up another network over the next few months (discussions are taking place) and therefore they are aligning Three with typical market offerings, but keeping on the budget / lower end, or they are going to have to invest £1BN in the existing network to rollout enough capacity and comparable performance to stay in competition.
So either of the above things need to happen, but it is no longer sustainable for them to keep bringing in low revenue, doing cut price deals and to put the level of investment needed into the network.