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Costs : Virtual Networks

Virtual mobile phone network tariffs

What are virtual networks?

In addition to the Big Five mobile phone networks, there are several other networks. These are all "virtual networks". They are operated by companies who buy airtime in bulk and resell it under a different brand name.

For example, Virgin and easyMobile use the T-mobile network, OneTel uses the Vodafone network, Sainsbury's and Tesco use the O2 network. BT (who used to own O2 in the days when it was called Cellnet), use O2 for their Business service and T-mobile for their Home mobile service.

BT are also developing a combined home and mobile phone service, using IP telephony, carried on the Vodafone network. Let's hope it is more successful than the last time they tried a combined home/mobile phone service! Details when we have them.

What is the advantage for me?

In general, these virtual networks offer different tariff options, and may be a better deal than offered by the underlying network they use. However, the devil is in the detail.

When you look closely, the total charges often turn out to be much the same. For instance, Sainsburys claim to match other networks, but exclude the best-value ones from their matches.

What are the possible disadvantages?

One particular issue is what you are charged for calls to other mobile phones. If you are using a lesser-known network, most people will be on a different mobile network, and you may end up paying a lot more for every mobile - mobile call.

Another thing to check is that you are not making assumptions about charges. One network charges a higher rate for the first three minutes of every call, not for the first three minutes of calls each day. Another virtual network charges by the minute, not by the second, so a 61 second call is charged as a 2 minute call. These are not exactly concealed in their publicity, but aren't pointed out very clearly either!

And the prize winner is...

Well, it's not that clear cut. Virgin, Tesco or easyMobile are probably the best bet. In general, Virgin mobile's tariff takes a lot of beating. For many people, Virgin's charges will produce lower bills than those of other networks, whether the call volume is high or low. Virgin uses the T-mobile network.

If you call mobiles on other networks, easyMobile or Tesco are excellent value.

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