Contracts will be available on the regular 12 month, and 18 month terms offered by other networks, but Carphone has also introduced a nine month contract aimed at those that look to change their handset as often as their underpants, as well as dangling a carrot in front of the higher spending pre-pay users.
Carphone reckons there are 4.5 million pre-pay users out there who regularly spend over £15 a month on top ups. These users don’t want to sign up to long-term contracts, but Carphone believe they’d be willing to sign to a shorter contract to save money.
News that the new service will run on the Vodafone network has cheered the industry following a big bust-up between the two firms last year when Vodafone stopped Carphone selling their contracts. However, this new arrangement does not mean that Carphone will resume selling Vodafone.
Tim Stone, director of new business development and wholesale at Vodafone, said ‘In March, we set out the Vodafone UK strategy to drive revenue growth and, as part of this, our ambitions to grow our wholesale market share. We estimate the wholesale market is worth around £1bn, so we are excited by the partnerships we have formed over the last six months with leading brands that, together with their market experience, will allow us to deliver our strategy. This MVNO agreement with The Carphone Warehouse is no exception and we look forward to a successful future together.’
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