There will be major promotion of this new cap early next week. The cap is 500, still the best in the market. Also once the free MMS promotion ends at the end of june the cost of PXT will be reduced to 0.20c per PXT.
Guess too many people used $10 text to send SPAM to people
The reason the cap was introduced was because every time a Telecom customer send a txt to a non-025/7 phone it costs telecom 17c. As you can imagine, with millions of these messages being sent a day it was not cost effective. It costs Telecom next to nothing for internal (025-025, 025-027, 027-025 and 027-027) messages. IMHO Telecom should still have unlimited txt for internal messages, that way alot of people would not be so PISSED OFF! I spoke with Telecom earlier and apparently ("This only affects 4-5% of our 027 customers, the ones that send more than 500 messages per month") Well if this is true, why the need to put such a low (again IMHO) cap on messages? C'mon Telecom, surely you could have seen this coming and come up with a better solution like unlimited Telecom-Telecom messages!
Spam isn't necessarily the problem, the number of msgs from 027 to other networks is. The current interconnection charge per msg is 14c + GST. Source is the SMS interconnection agreement which is posted on the Telecom site.
Telecom's big beef about anything flat rate (such as local phone calls, high speed internet as two examples) is that there will be people who abuse the system. The fact that somebody at Telecom thought flat rate SMS would save them from the big red machine and not cost them $$$, then force a rather embarrasing backdown and then convinced management that the idea would work shows the the exact reason Telecom mobile is suffering. It doesn't require a rocket scientist to work out how to combat Vodafone, unfortunately nobody at Telecom is intelligent enough to work that out yet.
There are ads in all the papers today in the oublic notices advising of of the change - Limit starts today for connections from today and 1st June for existing customers. $10 txt is guaranteed until 31st Dec 2004.