Behind the scenes

Galaxus Mobile comes up trumps with price comparison sites

1.6.2023

Translation: Katherine Martin

Ever since we launched our new mobile plans, we’ve been getting glowing reports from price comparison sites. So it’s fair to say our reasonable prices and fair conditions have gone down well with the experts. And our customer base? It’s on the increase.

Anyone who’s walked through our open-plan office in Zurich lately will have noticed there’s often a good atmosphere where Thomas Peter and the Galaxus Mobile team sit. The Senior Business Developer and his team have plenty of reasons to be satisfied; Galaxus Mobile, the successor to digitec connect, is going down a treat. Shortly after its launch at the beginning of May, consumer magazines and comparison sites scrutinised Galaxus Mobile’s services and contract terms. Their verdict validated what Thomas’s team had been hoping for.

Moneyland: «Exceptionally customer-friendly terms and conditions»

Comparison and advisory service Moneyland was the first to give its verdict on the new plans. Telecoms expert Ralf Beyeler examined both new packages – the Basic plan, which includes 3 GB of data for 14 francs, and the 19-franc CH Unlimited plan. He was especially complimentary about the latter:

Both of the new Galaxus Mobile plans are very attractive, from a price perspective. A monthly fee of 19 francs for unlimited local phone calls and data in Switzerland is very competitive.

Ralf Beyeler, moneyland.ch

Beyeler doesn’t make any clear recommendation for frequent overseas travellers who often make phone calls or use the internet from abroad. When it comes to roaming, Galaxus Mobile «is relatively expensive».

What Beyeler does see as advantageous are the contract terms – the often dreaded small print. He goes on to describe Galaxus Mobile’s terms as «exceptionally customer-friendly», citing it as one of the few Swiss providers that don’t charge an activation fee for signing up to a new plan. Customers can also terminate their contract at any time without having to pay a penalty fee, while the notice period takes effect at the end of the month.

The new Galaxus Mobile plans have also won the favour of SRF consumer magazine «Kassensturz». According to a market comparison prepared in collaboration with «Dschungelkompass» (article in German), for users who fall into the «Intensive Usage Switzerland» category, the CH Unlimited plan is the cheapest, at CHF 19 per month. The article goes on to say that the services offered by providers like Galaxus Mobile are proof of how inexpensive mobile phone plans have become.

This means that prices have fallen by more than 50 per cent since 2017, so it can be worthwhile for customers to compare and switch.

SRF «Kassensturz»

Although the price difference between Galaxus Mobile and competitors such as Lidl Connect, Swype or Digital Republic is negligible, Galaxus Mobile is the only one to offer the combination of one gigabyte of roaming every month, 5G speed, cancellation on a month-to-month basis and no activation fee.

No more promotional offers – at least from us

With the launch of these two new packages, the days of endless special offers are over. We weren’t immune to the recent wave of discount-itis either, launching promotion after promotion to gain new digitec connect customers. Quite rightly, we drew criticism for this – criticism that was occasionally harsh in nature. Anyone looking for the cheapest package felt as if they were constantly on the hunt for bargains.

But that’s a thing of the past. We’re convinced that our two mobile plans are fair and transparent. Even without the Family + Friends discount, our prices are among the lowest on the market. In abandoning special offers, we’re swimming against the tide – and taking a bit of a risk. Providers and advertising have conditioned many people to make purchasing decisions based on the size of a discount (article in German). When we see high-percentage discounts, the reward centre of our brains triumphs over the part where we feel the pain of paying. This has led researchers to conclude that discounts affect our brain in a similar way to cocaine. To be totally frank, it’s a mechanism we’d been exploiting.

Countdowns under fire

Meanwhile, another sales psychology trick is giving the State Secretariat for Economic Affairs (Seco), responsible for questions of unfair competition, cause for concern. Namely, promotional discounts that are seemingly only available for a limited time. As «Kassensturz» and «Dschungelkompass» made a joint effort to discover, these so-called countdowns are not always what they seem. When a countdown ends, it’s often extended, or a new one starts right away. This puts potential customers under time pressure, forcing them into signing a contract. Seco says companies who set time limits and then fail to adhere to them are creating false expectations. It added: «In our view, consumers are being deceived. It’s wilful misrepresentation as defined by the Federal Act on Unfair Competition.»

Whether or not business practices like this will become less common in the future is down to Seco. Generally, it takes action in cases when a large number of complaints have been received.

Countdowns like these suggest to potential customers that they could miss out on a once-in-a-lifetime opportunity. If it’s not a real countdown, however, it could be unfair competition.
Source: Martin Jungfer

«The switchover to a transparent mobile plan has been a success»

At Galaxus Mobile, Thomas has other, more enjoyable issues on his plate. There are currently three times as many people signing up to mobile plans per day as there were at digitec connect. Reflecting on Galaxus Mobile’s first month, Thomas says, «We think the switchover to a transparent mobile plan has been a success so far.»

He doesn’t deny that some customers were confused during the changeover. «Most importantly, we should have done a better job of clarifying and explaining the issue of vouchers purchased under digitec,» he admits. Not only that, he says, but potential customers still don’t know how easy switching providers has become. The fact that customers can keep their number, not lose any contacts, and be reached again immediately after the switch are points the Galaxus Mobile Team still frequently find themselves having to explain.

Do you have unanswered questions about Galaxus Mobile? What’s been your experience with our mobile plans? Let me and the Community know by leaving a comment. We’re curious to hear your opinions, and are open to new perspectives and suggestions.

Header image: Christian Walker

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Martin Jungfer

Head of Content

Martin.Jungfer@digitecgalaxus.ch

Journalist since 1997. Stopovers in Franconia (or the Franken region), Lake Constance, Obwalden, Nidwalden and Zurich. Father since 2014. Expert in editorial organisation and motivation. Focus on sustainability, home office tools, beautiful things for the home, creative toys and sports equipment.

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