Do you think the Telecom XT brand is damaged, and if so what can Telecom do?

Forums › Spark New Zealand (including Skinny and BigPipe) › Do you think the Telecom XT brand is damaged, and if so what can Telecom do?

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#301348 23-Feb-2010 08:35

cyril7: Yep, Telecom have taken a hit on the popularity stakes, but I guess there is no doubt that Alcatel Lucent are the real ones with egg on their face, its their gear, their support, their problem to sort at the end of the day.

Guess the question is, how many other 3G networks of this level have Alcatel implemented worldwide?, how many failures at this kind of level have Nokia, or Erricson had to deal with?

Cyril

Someone here did mention AT&T in the US and their 3G is not too good either..

Telstra in Ozz uses Ericsson as their network provider. Telecom NZ should have stuck with Ericsson or NEC for the W850 build..

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Old3eyes

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tumnasgt

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#301365 23-Feb-2010 09:07

old3eyes:
cyril7: Yep, Telecom have taken a hit on the popularity stakes, but I guess there is no doubt that Alcatel Lucent are the real ones with egg on their face, its their gear, their support, their problem to sort at the end of the day.

Guess the question is, how many other 3G networks of this level have Alcatel implemented worldwide?, how many failures at this kind of level have Nokia, or Erricson had to deal with?

Cyril

Someone here did mention AT&T in the US and their 3G is not too good either..

Telstra in Ozz uses Ericsson as their network provider. Telecom NZ should have stuck with Ericsson or NEC for the W850 build..

From what I gather with AT&T in the US, it's almost all lack of capacity investment. The iPhone has meant that they have a lot more customers using a lot of data (and calls), and their lack of investment in capacity means that their network just can't take it.

For now, my brother and I are on 2d, and my mother will be moving as soon as 2d offer data plans (she has an iPhone and uses ~150MB/month). If XT gets GSM fallback to keep SMS and call services running when the RNC fails, my mother could end up staying, though I think it is unlikely.

freitasm

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#301366 23-Feb-2010 09:09

Could we please stick to the topic "Do you think the Telecom XT brand is damaged, and if so what can Telecom do?"

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tumnasgt

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#301396 23-Feb-2010 10:17

freitasm: Could we please stick to the topic "Do you think the Telecom XT brand is damaged, and if so what can Telecom do?"

On topic now.

I don't think the brand is so much damaged as ruined.

IMO to get the brand any respect, they will need to do at least one of the following:

*Enable GSM (their cells do support it?) so phones can still SMS/call when 3G is down
*Replace the RNC with one from another company, if it is possible
*Slash prices. eg. double minutes for plans/halve prepaid rates. Include current contracts in offer.

I also think a roaming agreement with VF would be great, but it's hardly going to say "you should join our network".

ir1141

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#301399 23-Feb-2010 10:20

tumnasgt:*Enable GSM (their cells do support it?) so phones can still SMS/call when 3G is down

GSM requires extra equipment cabinets etc which have not been installed anywhere since they decided against using it

richms

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#301412 23-Feb-2010 10:52

Adding GSM is just dumb, unless they have some 1800/1900 freqs they could use for it.

reduceing the bandwidth for 3g just so they can have a fallback that noone will use most of the time is not a good idea IMO.

edit:

BRand will come back. Remember when CDMA launched and all the coverage and issues it had - now people go on as if it is the pinicle of reliability...

Perhaps the XT will have to change to something else when they add the next speed HSPA - like they called CDMA the T3G network etc.

Richard rich.ms

JasonDarwin

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#301423 23-Feb-2010 11:07

the brand is damaged and should find this guy quick.

see cartoon by number 5

http://www.interest.co.nz/ratesblog/index.php/2010/02/23/top-10-at-10-imf-inflation-targeting-backfl.../

freitasm

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#301424 23-Feb-2010 11:08

Just in: Telecom CTO resigned...

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ariosto

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#301428 23-Feb-2010 11:21

I think that, as long as actual network competition is so limited in this country, Telecom will eventually bounce back from this just purely as a function of time. There's certainly no shortage of people who have always hated Telecom, and while I think all this XT stuff is adding to that number, I think it's important to keep in mind that disliking a brand is not the same as refusing to use its services.

drquack32

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#301433 23-Feb-2010 11:33

I was talking to my wife the other day about brand equity (rather I was talking, she thought I was bananas). We were driving to the airport at Auckland and right there as you drive towards the domestic terminal in big bold letter is the words and logo AIR NEW ZEALAND across the top. Why I thought about that was because I wondered what the logo would look like changed from teal blue to pink and black (to match the supposed new uniforms) and then it hit me that I really do place alot of faith in Air NZ and that brand and colour scheme. I didn't give a crap about the new coloured uniforms and thought it was a lot of faffing about bugger all but I can now appreciate why there was debate.

So how does this relate to Telecom?

They lauched with this glossed brand XT - a departure from previous efforts of just Telecom, I think in an effort to keep the new network separate from other issues that Telecom face (commerce commission, unbundling, separating etc) and have XT as a stand alone brand immune from Telecoms woes. Unfortunately any equity in this brand is gone so in effect regardless of how well it performs in the future, its always going to be the butt of jokes. Similar to the Jet Star launch. Great product in Australia, rubbish in NZ and people wont touch it regardless of how it performs in the future.

In alot of respects creating the XT brand is probably the smartest move they have done and also a way out as well because I believe with such a damaged brand, they have no option but to shut it down. The letters XT will be synonymous with 'mediocre, unreliable, instability (add your own)' but that is the public perception and it now reality. The brand can not be saved so if you are Telecom don't mention it anywhere. Let it be associated as being that 'failed network' and let it die, take the hit on the chin and financial lumps but learn from it.

I believe the best resolution is to go underground for a year, keep the network running, don't market it, remove the XT branding quietly and slowly so that it disappears from the public psyche. Keep pushing the Telecom home package and your broadband deals in advertising but do not reference the mobile side or XT for a year in an effort to just bury it. Then once it has a year of running with no issues, rebrand the bugger and relaunch it. Sure people will say 'Will it do the same as XT?' but with a year out of sight and issues fixed, you can then (if you are Telecom) bank on it being a world class network. Right now it is world class technology, just not implemented in a world class manner.

Telecom may receive protection from XT fall out because of the separate brand (XT is mobile, Telecom is home and broadband) so I think they need to create as much distance as possible between Telecom and XT. I wouldn't have Paul Reynolds fronting the media because he is the head of Telecom. Get the head of XT out there, make him the face so that when they relaunch, they don't say 'oh its Paul Reynolds again'

GJB21

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#301453 23-Feb-2010 12:31

drquack32: I believe the best resolution is to go underground for a year, keep the network running, don't market it, remove the XT branding quietly and slowly so that it disappears from the public psyche. Keep pushing the Telecom home package and your broadband deals in advertising but do not reference the mobile side or XT for a year in an effort to just bury it. Then once it has a year of running with no issues, rebrand the bugger and relaunch it. Sure people will say 'Will it do the same as XT?' but with a year out of sight and issues fixed, you can then (if you are Telecom) bank on it being a world class network. Right now it is world class technology, just not implemented in a world class manner.

Telecom may receive protection from XT fall out because of the separate brand (XT is mobile, Telecom is home and broadband) so I think they need to create as much distance as possible between Telecom and XT. I wouldn't have Paul Reynolds fronting the media because he is the head of Telecom. Get the head of XT out there, make him the face so that when they relaunch, they don't say 'oh its Paul Reynolds again'

That's the closest thing to a realistic plan that I've seen in this whole sorry saga. Push XT back into the AL camp and concentrate on saving the Telecom brand.

murray29

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#301457 23-Feb-2010 12:51

freitasm: Just in: Telecom CTO resigned...

Rats and sinking ships come to mind...

timmyh

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#301459 23-Feb-2010 12:55

Maybe they knew there was a lot of risk right at the beginning so created XT to isolate this - and then later they could drop it...I mean, it never actually stood for anything did it?

drquack32

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#301464 23-Feb-2010 13:17

timmyh: Maybe they knew there was a lot of risk right at the beginning so created XT to isolate this - and then later they could drop it...I mean, it never actually stood for anything did it?

Precisely. I reference in my post about two back that I think they created it because Telecom have been through wars with separation, Commerce Commission and unbundling that XT was created as an aside to keep Telecom and its issues separate from a 'world class cellular network' and shelter the mobile launch from any 'Telecom' harm by association.

As you said, XT stands for nothing so its not like that are attached to it in a manner that they can't scrap it entirely and rebrand it. Had this been billed as Telecom Mobile, then they would seriously be in the poo regarding brand equity across the whole company and the name Telecom (more so than now)

mozzle

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#301476 23-Feb-2010 13:45

Absolutely there is no doubt the brand XT is damaged, ruined beyond repair. The much hyped-media train that launched and announced XT with much fanfare and celebrities has served as a double-edge sword now. If you start out with a hiss and roar - make sure it works, and you can back it up.
The latest announcements of resignations are pretty much inevitable, it had to happen. People want and need to see heads roll for this, a national service that is losing customers (and customers customers) and business daily.
How does one 'fix' the brand? I would Dump it. Get the problems fixed (obviously) - get a stable platform and then look at re-branding, but seriously for a lot of people out there the 2 letters XT is now seen as joke with poor reputation and reliability in it's short life so far..

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