Vodafone NZ locking handsets

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#130207 12-May-2008 12:51

old3eyes: I see in today's DomPost page C6 Infotech that Telecom is not going to lock it's new 3G handsets like Vodafone. Will be interesting to se what VF will do now. http://www.stuff.co.nz/4523351a28.html

Let's not forget that Telecom already locks its handsets and has done for many years.

Paul Brislen
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Vodafone

http://forum.vodafone.co.nz

amanzi

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#130223 12-May-2008 13:53

You're missing the point, Paul - and your response shows that you guys don't know how to handle competition. Vodafone are locking their handsets because they are afraid of the competition. Telecom have responded by saying they won't lock their handsets because they will provide better value and customer service than their competition.

It's almost as if Telecom read my blog post and have decided to compete based on excellent customer service and not by locking in their customers. (http://stuart.amanzi.co.nz/2008/05/02/vodafone-nz-to-lock-handsets-to-their-network/)

Instead of trying to lock in customers on two year contracts, with locked phones, exorbitant data rates, and crappy customer service, how about investing in providing a service that is so good, that customers have no reason to want to leave?

Your move, Vodafone...

sbiddle

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#130227 12-May-2008 14:09

amanzi: Vodafone are locking their handsets because they are afraid of the competition.

I actually disagree with this. I see it solely as a money making venture. People are still free to move their handsets between networks, it's just ca$hing ca$hing everytime somebody wants to do this.

The fact Vodafone will happily provide an unlock code for money shows it's nothing about "protecting the end user experience". if it was about protecting the end user and ensuring that they don't get complaints when live! doesn't work when you insert another operator's SIM Vodafone wouldn't unlock handsets at all.

ninjabear

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#130234 12-May-2008 14:24

handset locking is "standard practice" and will protect the "customer experience". Customers might be confused if they put Sim cards sold by other network operators into Vodafone handsets and were not able to access services such as Vodafone Live,

This was a quote on stuff.co.nz

Confused?Hahaha.Thats like such a poor excuse

People aren't stupid.If they bought a sim card in europe you expect them to think their europe sim card belongs to Vodafone NZ?

I don't think anyone is that stupid

Seriously IF "YOU" bought a sim card overseas.Would you be confused?Doesnt make any sense

Vodafone live isn't a major thing.Most people don't really use it.

jpollock

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#130239 12-May-2008 14:37

Wow, does that mean that VF Live works when the customer is roaming?

Pretty impressive if it does.

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ninjabear

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#130244 12-May-2008 14:44

jpollock: Wow, does that mean that VF Live works when the customer is roaming?

Pretty impressive if it does.

It works.Just charges you 5 times as much as the NZ data rate I believe.lol

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ninjabear

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#130245 12-May-2008 14:45

Nothing impressive about it

It's likesurfing your your isp web page overseas

freitasm

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#130247 12-May-2008 14:47

And being charged at $30 per megabyte while doing so... ($10 per megabyte in some other Vodafone networks).

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Macros

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#130254 12-May-2008 14:54

sbiddle:
amanzi: Vodafone are locking their handsets because they are afraid of the competition.

I actually disagree with this. I see it solely as a money making venture. People are still free to move their handsets between networks, it's just ca$hing ca$hing everytime somebody wants to do this.

The fact Vodafone will happily provide an unlock code for money shows it's nothing about "protecting the end user experience". if it was about protecting the end user and ensuring that they don't get complaints when live! doesn't work when you insert another operator's SIM Vodafone wouldn't unlock handsets at all.

I agree. As has been said, I doubt that Telecom or NZComms will be worried about a $50 rebate for changing networks.

The churn charge for ADSL was just to make some cash for Xtra when their customers started leaving. Same thing here.

jpollock

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#130259 12-May-2008 15:13

I'm just trying to remember how the traffic is routed with roaming data. I guess it's routed back to the home network first. Fun!

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freitasm

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#130261 12-May-2008 15:25

ninjabear: This was a quote on stuff.co.nz

This was actually posted here on this same discussion almost two weeks ago... Stuff is late.

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#130272 12-May-2008 15:52

First let me start by saying I work for Vodafone. I'm not high up the echelons, in fact I'm simply in sales. However, I do get to talk to many people in charge of decisions like these and hear much through our proverbial red grapevine.

Vodafone NZ makes substantially more net profit than Vodafone AU, despite the much higher user saturation in Australia. I'll let that sink in for a moment. It's run like any other business - to maximize profits. Therein lies the problem: we in New Zealand have inherent problems with poor management, from government through to their legislatory procedures [in determining how corporate entities conduct themselves], through to those said corporate entities. In theory, Telecom and Vodafone should have created a nice competitive climate - in practice they have somehow come to a 'gentlemans agreement' and maintained HORRENDOUSLY HIGH MOBILE PRICES - some of the highest in the world. Their argument has always been geographic restriction, that is, cost of creating and maintaining cell networks in a volcanic, rural, and low-user-density landscape with a technology that functions rather horizontally, with few exceptions. They paid off this infrastructure cost many years ago and are now reaping the rewards - minus maintenance. The exception is their 3G network which didn't immediately pay off, though it has now thanks to the data plans available.

Back to my original point, Vodafone will get away with anything the government allows that doesn't hurt their public perception enough for the initial act to pay off. Thankfully for them, Telecom already has a terrible monopolistic image, meaning Vodafone's many transgressions go wholly unnoticed or ignored - including this new handset locking policy. When these started occuring in the UK, the governing party actually created a whole new set of rules and regulations, controlling the ethical and legals implications of this new practice, and hence, market.

Most on this forum seem quite intelligent with their conclusions (more-so than the average 'Joe') and everyone is right to a degree. Yes, Vodafone wants another revenue stream. Yes, Vodafone wants to retain customers. Yes, it's cheaper and easier to do this to attain more revenue and retain more customers than increase the quality of their service. Yes, Vodafone makes more than enough money on call revenue alone to give every Texter 60 24month customer a free N95 (and still makes hundreds/thousands from you). No, Vodafone won't discount their handsets - until it hurts their bottom dollar. As an example, Vodafone purchase their handsets at bulk rates from the various manufacturers. The process takes months and incurs some risk if the handsets aren't eventually purchased (as we've seen recently with the horrible 'Vodafone 715' and 'Motorola V3x'). Vodafone purchases (at this bulk rate), the N95 (standard edition), for around $300 plus tax. It travels through several sales channels before eventually being sold to their valued customers for $1000. Their new 'Online Store' is just another way to cut out these channels and make more money.

One thing is for sure, Vodafone has been anticipating this new competitor for quite some time, signing people onto these new talker, texter and mega plans for 12/24 month terms - and they are scared; so is Telecom for that matter. This is GREAT news for the average mobile user in New Zealand. I hope it goes as well as Kiwibank did at increasing competition and shaking up an antiquated and oligopolising industry. I have a feeling it will.

This means DON'T SIGN UP ON ANY PLANS. DONT BUY ANY BRANDED PHONES. Just wait for the new competitor to arrive and raise all hell and magically, overnight, both Vodafone and Telecom will 'find ways' of giving us better value. I say show them that screwing us for all these years then trying to better new competition should not be rewarded. I'll be moving suppliers the second they come on-air.

VFNZPaulBrislen

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#130280 12-May-2008 16:16

you work for Vodafone?

Try getting the terminology right, eh?

Cheers

Paul

(Best laugh I've had all day)

Paul Brislen
Head of Corporate Communications
Vodafone

http://forum.vodafone.co.nz

old3eyes

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#130283 12-May-2008 16:35

PaulBrislen: you work for Vodafone?

Try getting the terminology right, eh?

Cheers

Paul

(Best laugh I've had all day)

If he / she works in sales they most likley know little about tech terminology..

Regards,

Old3eyes

mushion22

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#130284 12-May-2008 16:39

Hmmmm I wonder how long until the 'Echelons' hunt that guy down. Hopefully he/she wasn't silly enough to post that from work!

Oh well a good rebellious rant every now and again helps to keep the mind healthy.

Hmmm the Echelons thing makes me feel like watching Star Wars for no particular reason. PaulB, Richard Branson is secretly your father and wants you to turn to the darkside

I dont personally see why vodafone doesn't just let people access VFLive from competitor networks, that way they can still make some $$ from content as well as from their new churn fee.. Data charges would be a b*** but it seems that data plans are a changin' in the near future.

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