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Land Lines dead? Flat Rate Mobile Phones in UK

One 2 One tried to persuade Britons on Monday to stop using landlines by launching the UK’s first unmetered mobile phone deal.

The UK’s smallest mobile operator said its Precept Max tariff will offer unlimited, free calls at any time for 75 pounds ($110.8) a month.

It will benefit anyone using a pay-as-you-go phone for about 40 minutes a day, but One 2 One said it would also appeal to people looking for an alternative to landlines.

While British Telecommunications Plc’s fixed-line revenues have been hurt by the boom in mobile telephony, the high price of wireless calls is one factor limiting the extent to which people use mobiles from their homes and offices.

The new deal, which covers calls to UK landlines and One 2 One phones, is the first step in the company’s 2001 strategy to focus on profits rather than subscriber growth.

One 2 One was the slowest growing operator in the record-breaking Christmas quarter, but has questioned its rivals’ ability to make profits from pay-as-you-go customers lured by heavily subsidized handsets.

About Fabrizio Pilato

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