Ikea to Offer Pay as You Go Phones

Ikea will offer pay-as-you-go phones. But only to customers in Britain, says Business Week, who announced the Sweden based company’s decision on Monday, August 4.

The wildly popular retailer of home furniture and furnishings is throwing their own contender into the huge cell phone market. They intend to try their hand at being a wireless provider by offering Pay as You Go SIM phones at a substantially lower price than their competitors in the United Kingdom. In fact, according to Business Week, Ikea’s prices are about twenty five percent less than their competitors’.

Ikea is offering a flat rate, with calls costing 9 pounds per minute, while they are charging 6 pounds per text message. As stated, these are flat rates. They will stand during any time of the day and to any network. The only calls exempt are those going out to premium rate numbers. Users will not have to sign up for a contract. They will simply have to purchase 10 pounds of credit to active their phones for the first time. Furthermore, cell phone users who decide to use the SIM will be able to keep their present mobile numbers.

The retailer’s Pay as You Go phones will be offered to 1.4 million consumers – those who belong to the customer loyalty program known as “Ikea Family.” Consequently, Ikea’s phone plan is going to be known as “Family Mobile.”

The name makes sense when you take into account that people who sign up with the Family Mobile phone plan have the ability to create a household, or family, account, on which several SIM phones can be registered and used.

The MVNO, or mobile virtual network operator, Mobile Partners UK, is partnering with Ikea, says Business Week.

The Family Mobile phones, which will be available on August 8, will not be found in the Ikea Stores. Rather, interested consumers can purchase them through Mobile Partners UK.

On the launch day, 9,500 members of the Ikea staff will be given free Pay as You Go phones, complete with 5 pounds worth of credit.

(August 2, 2008)