Elsa Lion, Jonathan Arber
3 UK opens up X-Series to web 1.0
3 UK introduced this month a new addition to its X-Series offer. Customers may now choose between three tiered packages. The basic X-Series package provides 'unlimited' access to Windows Messenger and 'unlimited data' use on web surfing via Yahoo! Search, podcasts and eBay capped at 1Gb. The silver and gold packages are the original service bundles launched in December which give unlimited access to Skype, Orb, Slingplayer and email amongst other services. The new basic X-Series package is priced at £5 per month standalone and can be bundled into a postpaid subscription worth £35 or above. The new package is available to all customers, although 3 warns that the user experience of the service will be superior on the latest handsets. This is because many of the latest handsets come with fully-fledged web browsers. Comment: We were positive about X-Series at its launch in December last year and it remains an attractive, forward-thinking offer. However, this latest announcement may be an indicator that consumers have not been won over by the range of applications on offer, and that the X-Series has not seen the uptake 3 might have hoped for. While the X-Series is eye catching, customers may be put off by the complexity of some of the 'web 2.0' services it claims to give access to. The issue here is that Hutchison 3 does not provide an end-to-end Skype, Orb or Slingplayer service; what is provides in most cases is a compatible phone and connectivity. Customers have to set up services themselves in most cases, which limits the reach of the silver and gold packages to tech-savvy early adopters. By contrast, the new offer incorporates the two most immediate elements of X-Series (instant messaging and web surfing), without the rather more complex components. It may well be the case that users simply want unlimited data to use as they choose, and not a suite of managed services, some of which are of questionable value to the majority of consumers.The basic X-Series add-on also partially solves handset concerns that limited the reach of the silver and gold packages. For a long time customers could only choose from a very small range of very high-end handsets providing the latest multimedia features. The advantage of the basic package is that the services included will work well on a broader range of handsets. The new add-on could therefore be more successful. However, there is a danger that this new offer will simply confuse customers further. 3 will need to make a clear distinction between the three packages and clarify the value proposition for each deal. Currently, there is little or no differentiation between the basic and silver deals in terms of price and the incentive structure for dealers this month suggests that the basic offer will not be heavily promoted.
