Posted on 19-Jun-2003 11:13.
Filed under: News
Vodafone Australia has announced it will introduce a flagfall to its 'no plans' mobile calls, thanks to a cannibalisation of its SMS market.
Vodafone Australia press release says:
"Most mobile operators charge their customers a standard call connection fee, we call this “flag fall”. When Vodafone launched ‘no plans™’ two years ago we wanted to shake things up by not charging a flag fall on standard calls.* The ‘no plans™’ product was simple, easy-to-understand and had no lock-in contracts – these things remain the same today.
The majority of our customers already pay flag fall charges on their standard calls and although we’ve tried to avoid this situation, we now need to introduce it to our ‘no plans™’ customers. This is because rather than sending TXT messages, customers are now making very short voice calls instead. Consequently what customers are currently paying, no longer meets the cost of providing the service.
As a result, we have to introduce a flag fall charge of 25c on each standard call from 28 July 2003. So, a standard call will cost 25c plus the standard call duration charges.
Despite this change, we believe ‘no plans’ is still the best mobile product available and the features like no lock-in contracts and great rates are still in place. Remember we also have special services like 123 and the option to upgrade to Vodafone live! when you are ready.
Still, you don’t have to pay flag fall charges on all your mobile communications. If you send a TXT message instead of a short voice call - it’s flag fall free and a great way to stay in touch at just 25c per message sent,# which is really good value.
Never TXT’d before? Don’t worry, it’s so easy to use that around 10 millionTXT messages are sent in Australia every day!!**"