30 November - 6 December 2000

Mobile phone ‘price war’ highly unlikely

by Franco Aloisio

A mobile phone “price war” between Go Mobile and Vodafone Malta is highly unlikely despite both companies offering attractive and more competitive packages to their subscribers, industry sources said yesterday.
Go Mobile officially launches its mobile service tomorrow. The company’s rates, which were approved by the Telecommunications Regulator, are around 30 per cent cheaper than the present rates offered by Vodafone.
Immediately after Go Mobile announced their new rates, Vodafone responded through a media campaign by announcing special offers for the month of December with discounts up to 30 per cent. Meanwhile, Vodafone is still expecting its new tariffs to be approved by the regulator. The rates are expected to come into effect as from 1 January 2001.
Prof. Juanito Camilleri – CEO of Mobisle Communications, the company operating Go Mobile – said he believes there will be no price war in mobile phone
tariffs.
“A price war will take place only if Go Mobile and Vodafone continue undercutting each other by 30 per cent. Go Mobile came out with reasonable prices, and quite frankly I believe there is no space for further reductions. There could be promotional offers,” Prof. Camilleri said. “However, for both companies to continue investing into state-of-the-art technology, certain rates will have to be maintained. Go Mobile has already invested $30m in its system. We cannot kill the market in terms of quality and service. There is nothing for free. Price wars are driven by frenzy. Businesses should not operate on these lines, but on the grounds of a sustainable and good service for customers.”
On Vodafone’s Christmas offers, Prof. Camilleri said: “Vodafone has reacted positively and has offered competitive offers for December. They are close to matching us, but have not matched us yet.”
Meanwhile, Vodafone Malta yesterday reported a very encouraging uptake of service in first week following the launch of SMS Flash last week. The demand is predominantly in favour of sports, news and jokes, the company said.
“Vodafone is observing that a culture of pulling down information on one’s mobile is fast creeping in among Maltese customers,” said Mr Joe Meilak, Vodafone’s Business Development Manager.
The take-up for Go Mobile’s services has also been positive, with hundreds of people queuing outside the company’s retail outlets waiting to subscribe for the new mobile service.