Is Vodafone going to introduce Open term Contracts?

Forums › One New Zealand (including Vodafone, WxC, Farmside) › Is Vodafone going to introduce Open term Contracts?

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nyquist

101 posts

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#491454 9-Jul-2011 17:18

Yes, I agree. Historically, Vodafone has been really good with the upgrading of their plans which was why I was finally comfortable enough to sign onto a Smart plan. Previously, not even the handset subsidy was enough to overcome the 24 month lock in block, but now I have a feeling that even if the 3G promotion were to be discontinued, Vodafone would unlikely go back to 250MB.

I do agree that Vodafone should probably have open term options for those who don't need the handset subsidy as Telecom and 2degrees do.

networkn

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#491458 9-Jul-2011 17:36

sbiddle:
networkn: they can't pull the pin on a contract, if you sign, the terms and conditions of the contract are valid until the term ends.

They can pull the pin on the 3GB because it's not part of the contract, it's a promo.

If the contract states it includes the promotional 3GB for the duration of the contract, then they can't remove it, and if it doesn't then it should not be considered part of the contract, either way the poster is no worse for signing a contract.

quickymart

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#491536 9-Jul-2011 22:57

No contracts state anything about the 3GB AFAIK - it's a promotion.

gibben

46 posts

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#491752 10-Jul-2011 20:27

I have been looking around trying to figure what to do, Currently on a Vodafone on account plan, but I need more data ..... unfortunately the only way I can get it is to sign up to a 24mth term, this I have a big issue with. Honestly, I don't want a phone (already have a SGS2 I payed cold hard cash for) and don't see why I should pay a penalty if I don't want to be their customer later on.

Simple really, treat me well and I will remain a customer, but locking me in? As far as I am concerned it is a pathetic business model.

To be honest I am looking at the new Telecom plans, simply because I won't be locked in ....

networkn

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#491757 10-Jul-2011 20:37

You can't please everyone. The majority of people want handset subsidies and this means some form of commitment from the end user. I agree that 24 months is too long, and it would be nice to have off plan data plans, however I'd expect them to be more expensive.

loganjames

272 posts

Ultimate Geek

#491764 10-Jul-2011 20:56

it's not about pleasing everyone just choice, if I'm happy paying extra for my handset why do I need 24 months? every time I sign a long contract thinking wow that's a great deal! 6 months later a better deal comes out. I know its the nature of the business but I'll pay an extra $400 for a phone for freedom.

NonprayingMantis

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#491781 10-Jul-2011 22:04

networkn: You can't please everyone. The majority of people want handset subsidies and this means some form of commitment from the end user. I agree that 24 months is too long, and it would be nice to have off plan data plans, however I'd expect them to be more expensive.

both XT and 2Degrees offer open term as well as subsidies for a contract. There is not need to only offer contract.

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Wade

2225 posts

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#491784 10-Jul-2011 22:12

All offers have pluses and negatives, for some a term contract is the lesser of the evils, for others it is a deal breaker.

networkn

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#491797 10-Jul-2011 22:46

Exactly. VFNZ are a business with shareholders who expect a return on their investment each year, and therefore like all businesses, they need to assess the most profitable way to service clients and serve the greatest number of customers with the smallest footprint. If they supported every possible configuration, it would be hard for them to keep being profitable.

It's not that I don't understand your point, but rather than I think you need to understand why they can't offer every choice (or as I put it "please everyone")

Telecom/2D are different companies with different structures. I suggest that you speak to a VF rep and mention (respectfully) why you feel they should offer the option you want. It probably won't happen instantly, but it's change for the future hopefully.

BlakJak

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#492084 11-Jul-2011 15:02

networkn: Exactly. VFNZ are a business with shareholders who expect a return on their investment each year, and therefore like all businesses, they need to assess the most profitable way to service clients and serve the greatest number of customers with the smallest footprint. If they supported every possible configuration, it would be hard for them to keep being profitable.

It's not that I don't understand your point, but rather than I think you need to understand why they can't offer every choice (or as I put it "please everyone")

Telecom/2D are different companies with different structures. I suggest that you speak to a VF rep and mention (respectfully) why you feel they should offer the option you want. It probably won't happen instantly, but it's change for the future hopefully.

I fail to see how providing options to support customer demands is going to be unprofitable.
The justification of 'handset subsidy' should only apply if you're buying a handset. If you're bringing your own handset, and instead are simply undertaking to bring them your business, what exactly is the contract lock-in doing in terms of revenue protection? Anything?

No signature to see here, move along...

networkn

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#492089 11-Jul-2011 15:05

I explained this in my original post I thought. Essentially every option offered to customers costs a company to provide, in terms of resources related to advertising, marketing, technical support, CSR training etc etc etc etc. If there is little demand for something, they probably won't offer it, as the foot print to support it makes it unprofitable.

In a company the size of VF, I think people underestimate what is required to make even a relatively small change.

At this stage they obviously don't see a business case and the potential loss of small numbers of clients to other providers is the cost of this, which is less than the cost of offering it.

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