AT&T and Verizon in the US may be continuing to raise prices, such as their activation charges and unlimited texts, which are mandatory, however the remainder of the world is different as they are in the middle of a price cut fever.
Yoigo: iPhone 5 now free on contract
The mobile market is changing shape from Israel to South Africa and New Zealand thanks to brand new pricing initiatives. This is now very obvious in Spain more than any other country and they are one of the largest and most dynamic markets in Europe.
There is a new operator in town by the name of Yoigo, and then will be offering the iPhone 5 for free when a new contract of two years is taken out for just 25 Euros a month. There will also be a new plan coming out in December that provides voice calls for just 0.01 Euro per minute. Meanwhile if you want 1GB of data each month then you can add it in for 9 Euros a month to your iPhone 5 plan.
The carrier has 6% of the market in Spain and has managed to get over 300,000 new customers during the first three quarters of 2012. This is thanks to the larger carriers in Spain charging customers an arm and a leg for the iPhone 5. Telefonica lost over 800,000 customers between the months of April and August. This is a lot, even for a country where operators have managed to push carriers into profit losses that have been steep, thanks to price initiatives that are novel.
Of course this is a far cry from the mobile phone market in the US. With carriers like Verizon and AT&T discontinuing unlimited data plans, we don’t expect to see the iPhone 5 free on contract for at least another 2 years. But by then would you want one?