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xlinknz:freitasm: Interesting topic... IF you just want voice calls and SMS you wouldn't pay more for a 3G handset. Really.
Exactly
1. Mobile data charges in NZ are excessive and personally put me right off
2. I would argue 90% of use [if not more] of most peoples mobiles is calls and sms
3. Judging by the plethora of expensive handsets I't seems the Telcos make a lot of money selling handsets rather than new connections. [I'd be interested to know how much]
4. 'Geeks' aside most people have pretty plain non 3G handsets imho for every $500+ handset there are twenty <$200 handsets if not more
That said I hope 2degrees brings a fresh perspective to the market. Good on them for no contracts !
I'm still waiting on my $5 SIM LOL
Anyhow does XT need new customers ? I'm sure at somestage TCNZ will migrate all their CMDA customers to it
NonprayingMantis: Not sure abut the other points, but from what I have read most Telcos (including NZ ones) subsidise handsets, even off contract ones. IOW, every handset they sell they lose money on (although there are probably a few exceptions where they source their own branded handsets from cheap chinese manufacturers) in the hope that they make it back through calling data etc revenues fromt he person who buys it.
If you are interested you could probably check this by looking through the Telecom Annual report. see if the handset revenue is higher or lower than handset cost of sales. (although it might not go down to that level of detail)
xlinknz:
Well imho over the last 10 years handsets have got expensive, I'm sure there was a time when there were few handsets were $500+ let along $1K+, the price seems to have gone up and up like any fashionable accessory does
Furthermore I read somewhere the Vodafone CE in the UK stating that market saturation [connections] was at a point where the business was in new handset uptake !
bjhoogs: Telecom has committed to keeping the cdma network going til 2012 so why would they be uncomfortable with people using it.
They stand to gain far more by using XT to lure customers accross from Vodafone than they do by shifting customers from one network to the other.
langi27:
Its a known fact that CDMA technology is not being developed any further, the handsets are basic and lacks many features. I'd also bet that keeping the aging network alive is costing them millions in maintenance and running costs, for example Powering the CDMA base stations and airconditioning, old batteries, transmission that could be used for XT, rental from leases, Tower real estate that could be freed up for co-location or future LTE development. The list is huge.
Its not in Telecoms interest to keep CDMA going at all, and letting people hang around is worse than forcing them across to XT, even if that means giving them a new $100 cheap basic phones.
The point here is, are Telecom doing enough to get new and existing customers onto their network?,
In my opinion they are not. They will loose market share to 2degrees, and if they stuff around for 2 long they will also loose their existing CDMA customers.
"When the people are being beaten with a stick, they are not much happier if it is called 'the People's Stick'"
thegeekboy: Interesting topic. I think if the figure of 100,000 is right - then Telecom probably haven't done enough to get customers across to it - regardless of where they come from. Not an easy feat though. I'm with Vodafone with an iPhone - I get great coverage and speeds - and I have an inherent distrust of Telecom since their monopoly-days - so it's irrelevant for me. Both my parents have mobile phones with Telecom though - and for them - well - they just aren't interested. Their phones work just fine and they aren't too bothered about a "Newer faster network".
@bjhoogs - I think you make a very good point. i.e. Why spend money to lure customers when you already have them?
These are interesting times - and I am hoping that with the likes of 2degrees etc... the competition will heat up and this will mean better prices and deals for us as consumers.
@kawaii - don't be so quick to discount Bebo - regardless of FB and Twiitter - just because you don't mix with people who use Bebo doesn't mean that it's dead or unpopular.
On the "new network" aspect of this - Telecom Shareholders must be scratching their heads. Telecom has been through a number of network roll-outs and technology decisions - XT being the latest one. I imagine that this is a fairly expensive exercise. Choosing CDMA (way-back-when) has probably been costly for them too - Vodafone has probably been getting the lions share of roaming revenue for quite a while. But looking ahead, the next step will be LTE. AT&T are looking at 2010 to launch theirs - so it's not far away. Chasing this will be a consideration for Telecom and Vodafone - my guess is that it will be more painful for Telecom to do dollar-wise having spent so much on the XT roll-out.
More interesting times.
"When the people are being beaten with a stick, they are not much happier if it is called 'the People's Stick'"
NonprayingMantis: from what I have read most Telcos (including NZ ones) subsidise handsets, even off contract ones.?
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