Vodafone really are smart

By Steve Biddle, in , posted: 3-Nov-2006 07:43

My last few posts have knocked Vodafone so I thought it was time to say something nice about them.

Supa PrePay & BestMate is a *very* smart move by Vodafone.

The mobile market these days is all about making money. Unlike the past where it was all about growing customer numbers, the fact all the mobile operators paid far too much for their 3G licences means they now need to recoup the cost!

Both Vodafone & Telecom have a PrePay APRU (average revenue per user) of ~ $25 per month. So how does Supa PrePay affect this? As we all know the cost of voice calls and SMS's these days is very minimal, especially for on network traffic. With $10 TXT2000 Vodafone are now getting a guaranteed $10 upfront from their customers and BestMate gives them $6 revenue upfront. From what I've heard in the past 24 hours the uptake rate of Supa Prepay & BestMate has been better than expected which is great news for Vodafone - they are effectively getting $16 per month upfront from a growing number of PrePay users whereas before their guaranteed revenue was $0. With calls now rounded up to the nearest minute it's logical that the APRU for an average Supa PrePay user with BestMate & TXT2000 will now exceed that $25 average. That's what I call being smart.

All Vodafone need to do now is start the same way of thinking when it comes to on account plans. It's not about exploiting users, it's about making them feel like they are receiving value for money while setting monthly plan pricing that will grow your ARPU. Offering people compelling plans for around $60 per month which gives them maybe 300 mins of anytime calls/video calls and a large number of SMS's and some included data would be perfect for a large number of users. Offer the plan and the customers will come..

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Comment by tonyhughes, on 3-Nov-2006 08:11

hmmm... they start round up to the nearest inute, and suddenly this practice is a *smart* thing??

I do like the pricing on offer, I hope TNZ matches it, or I will feel compelled to get a Vodafone each for me and my kids - 2 phones, $6 each. $2 more than freedom to make it all mobile, and include SMSing as well.


Author's note by sbiddle, on 3-Nov-2006 08:44

I wouldn't say the rounding is a smart move but at the end of the day it's all about compromise isn't it. I doubt we're ever going to get the perfect mobile plan - if you want the cheap SMS and calling then Vodafone are simply going to sting you another way to get that revenue!

Comment by chiefie, on 3-Nov-2006 10:12

can you have more than 1 BestMate? I like to point out that, I'm currently paying around $65 for You Choose 20, 200TXT Anyone, 3MB Data Plan, PhoneInsure and overage. a $60-$80 with 50mins of Anyone/Anytime call, 200TXT Anyone, 5MB Data Plan then i'm all for it! OR They could simply launch $40, $80, $120 usage-credit for you to use whichever way you want it. Much like Telecom's Flexi but you pay what you want for that month, and any overage if usage goes beyond your pay plan. (of course a txt reminder and online statement to see how much credit you still got left to use for that month.

Author's note by sbiddle, on 3-Nov-2006 10:51

You can only have 1 BestMate on PrePay. Apprently the You Choose BestMate addon will allow up to 5 BestMates.

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Steve Biddle
New Zealand

I'm an engineer who loves building solutions to solve problems.

I also love sharing my views and analysis of the tech world on this blog, along with the odd story about aviation and the travel industry.

My interests and skillset include:

*VoIP (Voice over IP). I work with various brands of hardware and PBX's on a daily basis
  -Asterisk (incl PiaF, FreePBX, Elastix)

  -xDSL deployments

*Structured cabling
  -Home/office cabling
  -Phone & Data

*Computer networking
  -Mikrotik hardware
  -WAN/LAN solutions

*Wireless solutions
  -Motel/Hotel hotspot deployments
  -Outdoor wireless deployments, both small and large scale
  -Temporary wireless deployments
*CCTV solutions
  -Analogue and IP

I'm an #avgeek who loves to travel the world (preferably in seat 1A) and stay in nice hotels.

+My views do no represent my employer. I'm sure they'll be happy to give their own if you ask them.

You can contact me here or by email at stevenbiddle@gmail.com