Vodafone's not doing too well..

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sbiddle

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#5676 16-Nov-2005 16:12

27000 new customer in Sept Quarter vs another 72000 on Telecom.

http://www.stuff.co.nz/stuff/0,2106,3480913a13,00.html

And BTW Vodafone, locking people into 24 month contracts isn't the answer. I've heard the new plans are achieving a very low uptake which isn't surprising because they are crap. Why aren't you trying to drive the APRU up by actually giving people an incentive to upspend to $60 per month and give them value for money. Ditch the stupid peak/off peak split plan and offer them say 200-250 anytime minutes + a decent txt cap of say 100 msgs to 021/029 for $60, I bet you'll get large numbers of people switching. Keep rates high after the 200 if you want to stop losing the business customers who want a higher cap. Even letting people chose those topups on top of existing plans (which I believe was the original plan) would have been smart - changing plans and even putting peak time calls up to $1.09 per minute is not.

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#23364 16-Nov-2005 16:25

sbiddle I don't understand your post have you viewed the " You choose " plans

1000 SMS 021/029 is $9.95 the $6 is for 100 SMS to any network 025/027/021/029

All the " You choose " plans are anytime minutes

http://www.vodafone.co.nz/pricing_plans/you_choose_addons.jsp (add ons)

http://www.vodafone.co.nz/pricing_plans/you_choose_plans.jsp (plans)

sbiddle

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#23377 16-Nov-2005 17:17

I realise the new plans are anytime minutes, the new plans represent a step in theright direction but are far from perfect. Vodafone's real issue (like any business) is trying to increase ARPU. Basic business sence says you do this by upselling the existing customer base or obtaining new customers. Since obtaining new customers is becoming more and more difficult you you want to convince the existing talk 200/300 customer base which represents a significant number of non business customers to spend an extra $20 or so per month by making them believe they are getting significant value for money by spending more. An existing talk 200/300 customer is probably not going to see any value in switching to the new plans with the current pricing - but give that person the same 200 min package but make the calls anytime and throw them in say 100 free SMS for an extra $20 or so and your costs for providing the service have only increased marginally but the spend has increased significantly.

PhilM

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#23406 17-Nov-2005 08:35

The low uptake has to be partly because they won't let people switch & keep the same number (for prepay).

So if you're a customer, you have to reevaluate your whole phone connection. If you're going to do this, Telecom becomes an attractive alternative.

Personally, I've started using a PC based txt system from another country. The messages only cost 7.5 cents each. Its fine for sending stuff during the day and in the evenings at home.

My partner has actually bought a cheap telecom phone for the $10 txt stuff during the week, and quite a lot of her friend have done the same.

I think Vodafone are either frustrated by a system that restricts their flexibility, or are completely out of touch with the market.

chiefie

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#23423 17-Nov-2005 09:28

abolish peak/offpeak sounds good... give minutes allowance that can be used anytime is always a better idea as this seem to work in australia and other places. I opt for that options as i will call anyone during the day on any number but i don't need the business mobilise plan. and i txt anyone at anytime too but not in a huge number either.

And vodafone's restrictive billing system for prepaid/on account does really burn Vodafone NZ badly, as it is so inflexible that 021 prepaid users can't "upgrade/migrate" to on account even though they know and experience the greatness of vodafone services...

Vodafone doesn't have to do completely what Telecom is doing -- allowing users to switch back and forth between prepaid and on account, if that's what vodafone is worried? -- they can help migrating users from prepaid account to on account while keeping the same number. and give an option to step down to prepaid from on account with huge penalty fee (to discourage the move back to prepaid, this may have its own ill effect but at least majority people will be happy to be on account)

Also, how about an easy handover from 021-029? numerous time I get put off with going single bill because how inflexible it is to unite 021 to my telstraclear bill... at the moment i get 2 bills, vodafone and telstraclear, also telstraclear offers 029, but like anything else... you MUST change number..... how inflexible... where's the number portability? We need that in placed!

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muppet

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#23496 18-Nov-2005 11:07

I think Vodafone are either frustrated by a system that restricts their flexibility, or are completely out of touch with the market.

I hate to been seen to be supporting Vodafone, but prehaps they don't have a large stranglehold on the residential voice/copper network to use as a slush fund for their $10TXT loss leader?

I very much doubt Telecom are making a killing from $10TXT, but it's winning them marketshare which seems to be an even bigger driver for the Telco's than profit!

PhilM

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#23499 18-Nov-2005 12:01

Maybe, but what I'm talking about is existing customers who would want to move to a new plan devised by Vodafone as the competitive reply to Telecom.

The new offer would be arguably better, but you cannot switch to the new plan and keep your same number. This forces you to have a new number, and if you're going to have the inconvenience of that, Telecom's offer must also be evaluated.

While weighing up the relative benefits of Telecom and Vodafone, you must also keep in mind that Telecom will allow you to switch plans and keep the same number (for any future decisions you might make), while Vodafone will not.

The result of this new 'You choose" promotion could have the effect of driving people away, rather than attracting them.

chiefie

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#23500 18-Nov-2005 12:17

You can keep your number if you are already on On-Account plans. it is just changing plan that's all.

BUT if you are on prepaid and wanting to move to any On-Account plans, then you need to change number, which is very inflexible.

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johnr

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#23501 18-Nov-2005 14:12

PhilM if you are already a customer on Acc (not prepay) and you want to switch to the " you choose " plan you do not have to change your mobile number.

If you are advised this you should be taking your business somewhere else (try a vodafone owned store)

sbiddle

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#23509 18-Nov-2005 20:44

It's rather ironic that for the first few years after their entry into the NZ market Vodafone were very vocal about number portability and why it should exist in NZ. A few years on from that and they still can't even provide it on their own network, let along porting numbers from competing networks. At least we know Vodafone's issue will be solved by 2007 when portability comes into play so "next year" may actually be correct!

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#23511 18-Nov-2005 21:31

sbiddle: At least we know Vodafone's issue will be solved by 2007 when portability comes into play so "next year" may actually be correct!

Thats a very good point. You cant port 021 prepaid to 021 postpaid, but under mobile number portability between networks, even if vodafone doesnt change their stance, you could just take it to Telecom, then back to 021 postpaid....

lol

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#23528 19-Nov-2005 10:36

I hate to been seen to be supporting Vodafone, but prehaps they don't have a large stranglehold on the residential voice/copper network to use as a slush fund for their $10TXT loss leader?

I very much doubt Telecom are making a killing from $10TXT, but it's winning them marketshare which seems to be an even bigger driver for the Telco's than profit!

I have often wondered about the economic feasibility of the $10 text promotion. I suspect that Telecom is hoping that the type of customer who appreciates $10 text will also use services with higher profit margins such as ringtones, caller tunes and music downloads (when that service eventually becomes available). Personally, I am doubtful as to whether Telecom is actually reaping these rewards at the moment.

I think that contributors to this thread should be reminded that the ultimate goal of the telcos is not to maximise their market share but, rather, to maximise returns to their shareholders. Sure, having a higher market share can help them to acheive that goal, but not if it requires them to sink dollar after dollar into an unprofitable product or promotion.

charris1955

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#23542 19-Nov-2005 16:52

With TelstraClear decided not to build their own 3G network. I guess the DUOPOLY will contnue to keep the NZ mobile rates on top OECD.

I think the performance is not measured by the number of subscribers, but the ARPU per user. As in most of the area it is seen 20% o fthe user generates 80% of the business and balance 80% just 20%.

There are many posts which are bit BIASED, I guess few of the members are working for either of the operators.

johnr

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#23548 19-Nov-2005 17:45

Want to see a DUOPOLY go to China and what about the home line market that's a monopoly but good on Telecom they knew what to buy and it was going cheap.

charris1955

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#23551 19-Nov-2005 18:01

Hi John

For readers information both operators are GSM 900 and Hongkong is also part of china

China Resources Peoples Telephone Company Ltd
Hong Kong CSL Limited (HK CSL)
Hutchison Telecom (HK) Ltd (3)
New World PCS (New World Mobility)
SmarTone Mobile Communications Limited (SmarToneVodafone)
SUNDAY Communications Ltd
CTM
Hutchison Telephone (Macau) Company Ltd (Hutchison Telecom Macau)
SmarTone Mobile Communications (Macau) Ltd

There is program that you should see tomorrow on TV ONE at 19:30 called SUNDAY.

I am sure you are aware that we live in democratic country

alasta

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#23552 19-Nov-2005 18:13

People who complain about New Zealand phone charges being more expensive that that of other developed countries need to be conscious of the fact that New Zealand is a very sparsely populated country. The cost of building infrastructure here is enormous, relative to the potential returns, and I suspect that this is why TelstraClear could not justify going ahead with their own network (although there were probably political influences also).

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