Vodafone cable prices going up

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#1209452 6-Jan-2015 18:59

KiwiNZ: Vodafone are free to put their prices up, as with any seller the price they want is their choice. It should however be the buyers choice if they wish to pay the price, the buyer should be free to say no and move without penalty.
I doubt that VF will limit increases to end of contract or new connections. I feel if these increases cause minimal loss of customers they will increase across the board. They are trying to recoup losses.

Sky have done similar things before...do you think the same rule should apply?

MikeB4

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#1209453 6-Jan-2015 19:01

quickymart:
KiwiNZ: Vodafone are free to put their prices up, as with any seller the price they want is their choice. It should however be the buyers choice if they wish to pay the price, the buyer should be free to say no and move without penalty.
I doubt that VF will limit increases to end of contract or new connections. I feel if these increases cause minimal loss of customers they will increase across the board. They are trying to recoup losses.

Sky have done similar things before...do you think the same rule should apply?

Yes I do

Here is a crazy notion, lets give peace a chance.

21brandon21

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#1209541 6-Jan-2015 21:23

http://www.vodafone.co.nz/broadband-phone-bundles/

Will "Broadband with a home phone Unlimited Data $105" be going up by $4?

http://www.spark.co.nz/shop/internet/adsl/
Spark are reducing their price of that same plan to $99.

Seems stupid if Vodafone do increase the price for that plan.

Duffuss

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#1209545 6-Jan-2015 21:38

On a slightly different note I just got my unlimited naked ADSL bill and it has gone up $10

21brandon21

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#1209549 6-Jan-2015 21:52

On a side note, did Vodafone move their Call Centre to the Philippines? Whenever I call I always get Filipinos. Nothing wrong with it just wondering.

raytaylor

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#1209557 6-Jan-2015 21:59

I would personally expect the cost to go up by about the same as annual inflation - (which last year was about 1%)
The gigabytes can go up or stay the same, but the man digging the ground and connecting the joints needs his annual pay rise to meet inflation and thats where most of the cost is - labour.

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#1209562 6-Jan-2015 22:07

raytaylor: I would personally expect the cost to go up by about the same as annual inflation - (which last year was about 1%)
The gigabytes can go up or stay the same, but the man digging the ground and connecting the joints needs his annual pay rise to meet inflation and thats where most of the cost is - labour.

Cable is above ground..... And there's only install work happening these days....

________

Antoniosk

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#1209565 6-Jan-2015 22:13

antoniosk:
raytaylor: I would personally expect the cost to go up by about the same as annual inflation - (which last year was about 1%)
The gigabytes can go up or stay the same, but the man digging the ground and connecting the joints needs his annual pay rise to meet inflation and thats where most of the cost is - labour.

Cable is above ground..... And there's only install work happening these days....

It's above and below ground here in Christchurch. The repeaters are in green boxes along the footpath

CcMaN

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#1209574 6-Jan-2015 22:25

21brandon21: On a side note, did Vodafone move their Call Centre to the Philippines? Whenever I call I always get Filipinos. Nothing wrong with it just wondering.

TelstraClear's account enquiry staff (not faults/sales/retention) were based in the Philippines, so could just be using their staff as well as NZ staff to answer calls.

graemeh

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#1209581 6-Jan-2015 22:39

KiwiNZ:
quickymart:
KiwiNZ: Vodafone are free to put their prices up, as with any seller the price they want is their choice. It should however be the buyers choice if they wish to pay the price, the buyer should be free to say no and move without penalty.
I doubt that VF will limit increases to end of contract or new connections. I feel if these increases cause minimal loss of customers they will increase across the board. They are trying to recoup losses.

Sky have done similar things before...do you think the same rule should apply?

Yes I do

I think I'm missing something in this conversation.

Vodafone have said the price will not increase for those who are in a contract. It will only increase for them at the end of the contract.

Is this what Sky have done or have they put the price up during the contract?

deadlyllama

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#1209733 7-Jan-2015 10:17

sbiddle:
eXDee: I find this laughable, especially with the UFB price going up too

I suspect we'll see a lot of price increases on 100Mbps and greater UFB plans across the board this year as many ISPs realise they've priced them too cheaply.

Really? Surely for most people the higher than 30MBps UFB speeds are more of a "hey, cool" and a product differentiator than something that makes a real difference to their internet experience [apart from large downloads]. GZ posts by ISP people seem to indicate that access circuit speed makes little to no difference to network usage.

I downshifted to 30/10 because the extra $20-30/mo for 100/50 wasn't something I actually needed. I may be soon going back to 100/50 by shifting ISPs to someone who offers it at a price I can justify paying. Apart from a few spikes during large downloads will make no difference to the load I place on their network, and it won't change my average monthly usage.

TL;DR a higher base access speed lets an ISP engage in non-price competition. High sticker prices will scare away new customers. Putting up your prices gives your customers a reason to look at the competition, so it only works if your competition puts up their prices too.

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sbiddle

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#1209740 7-Jan-2015 10:26

deadlyllama:
sbiddle:
eXDee: I find this laughable, especially with the UFB price going up too

I suspect we'll see a lot of price increases on 100Mbps and greater UFB plans across the board this year as many ISPs realise they've priced them too cheaply.

Really? Surely for most people the higher than 30MBps UFB speeds are more of a "hey, cool" and a product differentiator than something that makes a real difference to their internet experience [apart from large downloads]. GZ posts by ISP people seem to indicate that access circuit speed makes little to no difference to network usage.

I downshifted to 30/10 because the extra $20-30/mo for 100/50 wasn't something I actually needed. I may be soon going back to 100/50 by shifting ISPs to someone who offers it at a price I can justify paying. Apart from a few spikes during large downloads will make no difference to the load I place on their network, and it won't change my average monthly usage..

It's not just about monthly usage - as we all know having a higher access speed won't necessarily change people's habits. What we doknow though is that usage is increasing significantly year on year.

A lot is to do with building network backend systems. There are a finite number of customers you can put on a BRAS, and a finite throughput. You can't scale a network to only just cope with your average network capacity, it needs to be built to cope with peak capacity, and allow for future growth. There would be smaller ISPs around that may only have 1Gbps handovers or equipment that only has 1Gbps ports. There are bigger providers who have 10Gbps handovers and equipment with 10Mbps ports. As we move towards faster headline speeds and need to scale a network accordingly the costs of moving from 1Gbps to 10Gbps, or even worse, 10Gbps to 100Gbps are not insignificant.

The number of ADSL/VDSL vs 1Gbps UFB customers you can manage on a BRAS are very different, and this has to be taken into account. As higher access speeds become the norm then we're going to see scalability issues become a much bigger issue.

MikeB4

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#1209742 7-Jan-2015 10:31

antoniosk:
raytaylor: I would personally expect the cost to go up by about the same as annual inflation - (which last year was about 1%)
The gigabytes can go up or stay the same, but the man digging the ground and connecting the joints needs his annual pay rise to meet inflation and thats where most of the cost is - labour.

Cable is above ground..... And there's only install work happening these days....

Not correct, ours is under ground. Also VF have been doing a lot of upgrade work to the cable network.

Here is a crazy notion, lets give peace a chance.

deadlyllama

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#1209790 7-Jan-2015 11:09

sbiddle:
deadlyllama:
sbiddle:
eXDee: I find this laughable, especially with the UFB price going up too

I suspect we'll see a lot of price increases on 100Mbps and greater UFB plans across the board this year as many ISPs realise they've priced them too cheaply.

Really? Surely for most people the higher than 30MBps UFB speeds are more of a "hey, cool" and a product differentiator than something that makes a real difference to their internet experience [apart from large downloads]. GZ posts by ISP people seem to indicate that access circuit speed makes little to no difference to network usage.

I downshifted to 30/10 because the extra $20-30/mo for 100/50 wasn't something I actually needed. I may be soon going back to 100/50 by shifting ISPs to someone who offers it at a price I can justify paying. Apart from a few spikes during large downloads will make no difference to the load I place on their network, and it won't change my average monthly usage..

It's not just about monthly usage - as we all know having a higher access speed won't necessarily change people's habits. What we doknow though is that usage is increasing significantly year on year.

A lot is to do with building network backend systems. There are a finite number of customers you can put on a BRAS, and a finite throughput. You can't scale a network to only just cope with your average network capacity, it needs to be built to cope with peak capacity, and allow for future growth. There would be smaller ISPs around that may only have 1Gbps handovers or equipment that only has 1Gbps ports. There are bigger providers who have 10Gbps handovers and equipment with 10Mbps ports. As we move towards faster headline speeds and need to scale a network accordingly the costs of moving from 1Gbps to 10Gbps, or even worse, 10Gbps to 100Gbps are not insignificant.

The number of ADSL/VDSL vs 1Gbps UFB customers you can manage on a BRAS are very different, and this has to be taken into account. As higher access speeds become the norm then we're going to see scalability issues become a much bigger issue.

I think we're talking at cross purposes. I agree that network traffic will increase year on year as it has done since the dawn of the ARPAnet. Network upgrade costs have been with us for a long time.

The problem is that the NZ residential broadband market is hypercompetitive -- this puts a lid on what an individual ISP can charge before customers jump ship. Flat or declining revenue without similarly declining costs mean either lower profits, less money for infrastructure, or both.

Competing on base access speed is non-price competition. If your points of difference to your competition involve faster access speed instead of "we're cheaper" you can use this to attract (potentially) higher margin customers.

Serious

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#1209935 7-Jan-2015 14:34

Well... this price increase email arrived in my inbox today.

What will get me on the phone to VF is the doubling in price of the extra data from$1GB to $2GB (and thanks to my kids we go over our 80GB quite regularly).

It seems rather unjustifiable - and frankly, I don't want to sign up for Unlimited and lock myself into a plan that is looking a lot more expensive than their competition.

It will be an interesting call...

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