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Telecom New Zealand extends $10 SMS untill end of 2005
Posted on 8-Aug-2004 15:26. | Tags Filed under: News.

Telecom New Zealand extends $10 SMS untill end of 2005
In another move against rival Vodafone New Zealand, Telecom New Zealand decided to extend the end of its $10 TXT promotion, now 31 December 2003. The promotion allows mobile users to send up to 500 monthly SMS for NZ$10 (US$6).

Telecom Mobile General Manager Kevin Kenrick said, as it currently stands, texters with Telecom are saving up to $90 a month compared with the current texting rate offered by competitors.

“With $10 TXT guaranteed until at least the end of next year, 027 customers will save around $1,440 over the next 16 months – money that can be spent on other things,” Mr Kenrick said.

“Our customers love $10 TXT – so much so that, in the past nine months, texting on Telecom has massively increased, and Telecom has become the undisputed number one texting provider in New Zealand,” he said.

“While generating a fair bit of discussion at the time, the cap has successfully reduced ‘text bombing’ without affecting the vast majority of Telecom’s customers who use text messaging responsibly.

“Most of our customers come nowhere near the 500 message per month limit, and those who do are migrating to the heavy texting plans on Boost Mobile that were developed in consultation with heavy texters themselves.".

The $10 cap was introduced in May 2004 by Telecom New Zealand after their previous promotion showed that no limit is not a good business. Previously $10 allowed mobile users of its CDMA network (027) to send as much SMS as they wanted, after reaching the $10. Some users were sending more than the fair amount of SMS. When the operator decided to end the previous promotion, some users complained that Telecom did not warn them about possible changes in this plan, which was their primary reason to change from competitor Vodafone. This issue was heavily discussed and caused Telecom to implement the $10 TXT promotion with a 500 messages limit. One user protested against this decision by sending more than 80,000 SMS in a single month.

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