Telecom increase second line pricing by 22%. Looks like shooting themselves in the foot.

Forums › Spark New Zealand (including Skinny and BigPipe) › Telecom increase second line pricing by 22%. Looks like shooting themselves in the foot.

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#969097 17-Jan-2014 20:47

mattwnz: When I had a second line, they updated the price yearly, so the 22% rise wouldn't likely be a catchup for years where it didn't go up would it?

They are effectively cancelling the Second HomeLine product, second line will now be the similar price as first line. So essentially the wholesale pricing model no longer allows them to offer discounted second lines. As for past yearly price increases, they are allowed yearly increases of no more than CPI under regulation but they stopped that a few years ago (otherwise HomeLines would cost more than $50 now). Also most people now buy phone broadband bundles now so it's not really evident.

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#969101 17-Jan-2014 20:58

Spong:
coffeebaron: Fully featured WxC VoIP line = $11.50 per month.

This looks very interesting, with minimal hardware costs, i.e. Cisco SPA122 for around $70+ GST. How's the reliability and call quality?

Do you know what "Local Calling" means with World Exchange? I'm in Mairangi Bay, and feel ripped when having to pay Telecom toll rates to call Hibiscus Coast (less than 20km away) which I feel should be a local call.

Local calling is the same with every provider, it doesn't matter who you are - their are lists of LCAs (local calling areas) and LICAs (local interconnect calling areas) which apply to everybody.

Of course if a provider choses to provide all national calling for a fixed rate that's up to them.

Beavis

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#969124 17-Jan-2014 21:17

Vote with your feet, I always do. Makes me feel good, even if it's not always the best option sometimes in the long run...

richms

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#969132 17-Jan-2014 21:33

Get a nice siemens dect voip solution and port the number to 2talk.

call quality is sweet as unless you are hammering the upload on the connection, in which case put the savings in line costs towards going VDSL for your internet and sort out the limited upload, and if its still an issue look into a QOS capable router.

Richard rich.ms

davisg

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#969582 19-Jan-2014 10:34

Yes, well I'm keeping my second line, currently mainly used by SkyTV, fax, and alarm monitoring but switching it to Vodafone fixed line since there is now no cost advantage to sticking with Telecom (by the time you include the talk plan benefits etc).

I can then choose which line to use depending on specific call costs etc.

Also looking at bringing in Vodafone BB which then allows me a femtocell which means I can stay with VF mobile instead of switching to Telecom Mobile for better coverage at home, but that is another story.

Thanks TC, I needed the nudge to move forward. Shame your revenue will be down by $540 per year.

Anyone else?

mxpress

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#969595 19-Jan-2014 10:59

davisg: Yes, well I'm keeping my second line, currently mainly used by SkyTV, fax, and alarm monitoring but switching it to Vodafone fixed line since there is now no cost advantage to sticking with Telecom (by the time you include the talk plan benefits etc).

I can then choose which line to use depending on specific call costs etc.

Also looking at bringing in Vodafone BB which then allows me a femtocell which means I can stay with VF mobile instead of switching to Telecom Mobile for better coverage at home, but that is another story.

Thanks TC, I needed the nudge to move forward. Shame your revenue will be down by $540 per year.

Anyone else?

I've had my second home line for over 14 years. I only kept it because it was cheap and handy to have for the kids and my home workshop eftpos. Like other's here, I will now, after being a very loyal Telecom customer all my 59 years, I will be looking for a better deal, even if it means switching providers. This stupid move by Telecom is going to cost them plenty. I wonder why anyone would make such a stupid business decision. I thought these highly paid desk jockeys were supposed to be highly intelligent as well?

mxpress

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#969611 19-Jan-2014 12:47

I think it's a really good thing they've done this, otherwise I would have just kept on paying $38 a month for my second line and got on with my life. Thanks Telecom.

This has made me look closer at whether I really need a second line, and if so what the options are. I've now got my second line number diverted to our first line with faxability ring. That way we can tell if it's a business or domestic call. Cost $2.50 mth, saving $426 yr.

If we find we really need a second line, I'll go with WX VFX for $11.50 mth + ATA router cost $70+ GST, which offers far more features and better calling rates. Also have more minutes on my 2Degrees carryover plan than I need so, problem solved.

Thanks again Telecom, and I appreciate the $10 mth loyalty discount you've reinstated after this fiasco. Hope this decision doesn't affect your bottom line too much :-)

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chevrolux

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#969635 19-Jan-2014 13:46

This is excellent!

It will now be even easier to get customers to move across to 2Talk lol...

Thanks Telecom!!

jeffnz

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#969693 19-Jan-2014 16:34

I'm guessing it isn't a big money maker for Telecom so like most business's they up the price on the least used and competitively price the most used.

It doesn't affect me so finding it hard to have any sympathy really, sorry bad attitude I know.

I'm paying way less and getting more nowadays so long may it last.

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NonprayingMantis

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#969695 19-Jan-2014 16:41

I guess they figured that with 2talk etc available for $10 or less a month for several years, along with massively lower toll rates, those few people stupid enough to still have a second line probably won't care too much about a price increase.

Judging by this thread, looks like they were wrong about how much those people actually care.

jeffnz

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#969703 19-Jan-2014 17:06

I'm guessing they understand the impact on their business and made the decision based on what was good for the stakeholders. If they did it just to spite people or without thinking the repercussions they will pay a price.

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sbiddle

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#969707 19-Jan-2014 17:36

I'm surprised the Commerce Commission haven't actually picked up on this in the past and stopped Telecom from doing it - selling a product you supply below the cost of a regulated product isn't a smart thing to be doing.

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#969708 19-Jan-2014 17:38

Spong:
coffeebaron: Fully featured WxC VoIP line = $11.50 per month.

This looks very interesting, with minimal hardware costs, i.e. Cisco SPA122 for around $70+ GST. How's the reliability and call quality?

Do you know what "Local Calling" means with World Exchange? I'm in Mairangi Bay, and feel ripped when having to pay Telecom toll rates to call Hibiscus Coast (less than 20km away) which I feel should be a local call.

We've been using VFX as our mainline for years now. Our ISP was TelstraClear (cable), which is now Vodafone. We don't have a standard phone here and of course VoIP uptime will be as good as your ISP's plus your power supply. We have had no problems in many years around here. We of course have a couple of UPS in the house to power at least the router and phones in case of a power outage, plus a couple of battery packs to charge our mobile phones if it comes to that.

farcus

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#969718 19-Jan-2014 18:29

traderstu: Fully featured 2Talk VoIP line = $6.90 per month and includes 2000 local minutes. Lots of options in this space. Is Telecom heading the same way as NZPost? Gone by lunch-time?

that's the 2talk10 plan which is actually $11.50 p/m and has been for a number of years.

timmmay

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#969724 19-Jan-2014 19:09

People still use PSTN phone lines?

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