The UK mobile market has approximately 112 million subscriptions with mobile phone operators vying for new customers and seeking to retain existing customers with ever enhanced monthly subscription packages. The mobile phone has become an essential tool in most households’ everyday life, and should a customer lose their job, they will need a phone to help them get another job. Mobile Phone Waiver is a promise from the phone provider to waiver the customers’ contract fee for a specified period if a protected event occurs.
The waiver can cover the entire monthly payment but not any usage over and above the inclusive minutes, data and text allowance. Some mobile operators ask whether a Mobile Phone Waiver feature will increase the cost of their airtime agreements, the answer is not necessarily. Within any airtime agreement the phone operator already has an amount allocated for acquisition, retention, arrears, bad debt, collections, legals, recovery, solvency profit and many other cost centres.
Mobile Phone Waiver would certainly be another cost centre, but having Mobile Phone Waiver in place is expected to reduce the incidence of arrears, which in turn will have an impact on customer collection costs, legals and ultimately the cost of solvency. In most instances the true cost of the Mobile Phone Waiver feature is negligible. The phone operator will also be expected to receive more new business because of the enhancement to their airtime offering.
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