Vodafone cable prices going up

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#1209940 7-Jan-2015 14:41

Serious: 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...

I'm in a similar position - just coming up to the end of a 12-month (I hope, not 24!) contract with VF for 80GB VDSL, and also considering moving to unlimited because of regular overage now we use Spotify, amazon prime, BBC etc etc. Ditched Sky six months ago so the free MySky with VF is no longer relevant. Spark are looking $15 pm cheaper, plus I think they have a $100 sign-up bonus.

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#1209960 7-Jan-2015 15:32

Serious: 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...

80 GB is never enough.

Overage rates are deliberately priced high to push people towards unlimited plans - which are the way to go with a VDSL or faster connection.
If you upgrade from 80GB to unlimited you may not be required to commit to a new 12 contract - just to run to the end of your old one.
I've upgraded with VF three times, and have never had my contract extended.
All ISP's VDSL charges are subject to change soon, so price comparisons are difficult.

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NZCrusader

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#1209965 7-Jan-2015 15:44

Well at least being on a contract the price won't rise for me until the end, however fiber is near and I will definitely re-evaluate my position in a year if VF does indeed press on with the price rise for HFC.

Still makes me mad that they are being dishonest, blaming the price rise on the chorus pricing for copper.

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540trickzter

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#1210019 7-Jan-2015 16:53

Sideface:
Serious: 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...

80 GB is never enough.
Overage rates are deliberately priced high to push people towards unlimited plans - which are the way to go with a VDSL or faster connection.
If you upgrade from 80GB to unlimited you may not be required to commit to a new 12 contract - just to run to the end of your old one.
I've upgraded with VF three times, and have never had my contract extended.
All ISP's VDSL charges are subject to change soon, so price comparisons are difficult.

I was on the 80GB 50/2mb cable plan and just switched to the unlimited plan a month or so ago and I was required to sign a new 12month contract... I wish I didn't because Fiber is just starting to get installed down our street next week! The last time I checked the Enable website a few months back, it said my street was going getting Fiber in June...

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rhector

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#1210141 7-Jan-2015 20:20

I was on the 80GB 50/2mb cable plan and just switched to the unlimited plan a month or so ago and I was required to sign a new 12month contract... I wish I didn't because Fiber is just starting to get installed down our street next week! The last time I checked the Enable website a few months back, it said my street was going getting Fiber in June...

Last time I changed plan, they were going to put me on a contract - I asked them if I could pay slightly more and stay off, and they agreed. $5 difference IIRC. Then, I think the price dropped back a few weeks/months later, though I don't know if that was related.

Richard

lchiu7

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#1210343 8-Jan-2015 08:46

Well I have triple service with Unlimited Ultra Fast Cable 130MB, home phone and TV.

The Internet and phone combo is $134.99 and I get a discount of $10 for having an on account phone.

So far no e-mail or snail mail about an increase but I am on a contract.

I guess the issue is, while it looks like Internet is a competitive market, it's really a duopoly with either DSL/Fibre (Chorus) or cable (Vodafone). And it doesn't make it any easier with Vodafone who also is DSL/cable provider.

Perhaps the market needs something similar to what exists in the electricity market where Commerce Commission regulates how much profit the lines companies are allowed to make and they can set prices accordingly. So when they apply increases, they have to justify their increases (maintenance, capex, etc.) and not just profit increases.

http://www.comcom.govt.nz/regulated-industries/input-methodologies-2/electricity-distribution/

They have oversight over what Chorus can charge for copper but no say over what the ISP can charge. And if all charge similar prices then there really isn't much competition.

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#1210344 8-Jan-2015 08:48

If you change plan in a way that results in a technology change there is usually a cost involved. This is where the contract comes in. You don't have to get a contract you can elect to just pay the costs yourself but frankly the contract is in most circumstances the better deal. A change of plan where no technology change is involved will not normally involve a contract unless you are trying to get something for free.

e.g. If Bob changes from 80GB ADSL to Unlimited ADSL and keeps using his old modem them no contract.
e.g.2 If Bob changes from 80GB ADSL to Unlimited VDSL then Bob can opt to go on contract or pay for a new modem and an master splitter.

Please note: I have a professional bias towards Vodafone.

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#1210492 8-Jan-2015 12:33

Sideface: ... If you upgrade from 80GB to unlimited you may not be required to commit to a new 12 contract - just to run to the end of your old one.
I've upgraded with VF three times, and have never had my contract extended. ...

Just to clarify - these three upgrades involved the same technology - VF cable - with no new hardware or installation involved.

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spronkey

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#1210513 8-Jan-2015 13:19

lchiu7: Perhaps the market needs something similar to what exists in the electricity market where Commerce Commission regulates how much profit the lines companies are allowed to make and they can set prices accordingly. So when they apply increases, they have to justify their increases (maintenance, capex, etc.) and not just profit increases.

Perhaps. Or we should just get rid of this stupidity with having multiple competing networks for something that arguably is already national infrastructure. Ditto with the ridiculous situation of having three separate and not quite compatible mobile networks.

This price increase from Vodafone is ridiculous, dishonest, and they really should be punished for the way they are spinning it. Tell the bloody truth - "we're increasing prices because we've had to increase prices on our other plans, and we know that you have no other option but to pay the increased prices."

They are the worst telco in New Zealand, and certainly the most greedy corporate. Even Sparkecom is better. Makes me very glad that I have recently managed to move away from Vodafone completely.

hairy1

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#1210517 8-Jan-2015 13:24

Golly spronkey. Strong words. I suggest you read the FUG.

Cheers, Matt.

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antoniosk

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#1210519 8-Jan-2015 13:30

shk292:
Serious: 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...

I'm in a similar position - just coming up to the end of a 12-month (I hope, not 24!) contract with VF for 80GB VDSL, and also considering moving to unlimited because of regular overage now we use Spotify, amazon prime, BBC etc etc. Ditched Sky six months ago so the free MySky with VF is no longer relevant. Spark are looking $15 pm cheaper, plus I think they have a $100 sign-up bonus.

Dont forget the unlimited 'pool' is traffic managed.... although I don't know if they can do that for cable traffic, but it's certainly done for the other networks.

Too bad if you dont want traffic mgmt - I dont.

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NZCrusader

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#1210529 8-Jan-2015 13:49

hairy1: Golly spronkey. Strong words. I suggest you read the FUG.

Cheers, Matt.

Might not be defamation, so he might be alright actually.

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sbiddle

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#1210547 8-Jan-2015 14:07

lchiu7:
Perhaps the market needs something similar to what exists in the electricity market where Commerce Commission regulates how much profit the lines companies are allowed to make and they can set prices accordingly. So when they apply increases, they have to justify their increases (maintenance, capex, etc.) and not just profit increases.

http://www.comcom.govt.nz/regulated-industries/input-methodologies-2/electricity-distribution/

They have oversight over what Chorus can charge for copper but no say over what the ISP can charge. And if all charge similar prices then there really isn't much competition.

What you've described is exactly how the wholesale market works.

The Commerce Commission has no say over what retail price electricity providers charge, and should never have a say over retail pricing of any non monopoly industry. There mere thought of that in any industry is a very scary implication.

It's pretty safe to say right now that if there was regulation of ISP retail pricing that many customers at the low end of the market would be paying significantly more than they are at present. Current low end pricing is in some cases pretty much a zero margin business.

hairy1

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#1210577 8-Jan-2015 14:39

NZCrusader:
hairy1: Golly spronkey. Strong words. I suggest you read the FUG.

Cheers, Matt.

Might not be defamation, so he might be alright actually.

Yeah but swearing and not correctly labeling companies is against the fug.

On another note I respect Vodafone's right to increase prices. If they are making a loss then fair enough. I think the way they have gone about it could have been handled differently.

Cheers Matt.

My views (except when I am looking out their windows) are not those of my employer.

Jaxar

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#1210625 8-Jan-2015 15:18

sbiddle:

It's pretty safe to say right now that if there was regulation of ISP retail pricing that many customers at the low end of the market would be paying significantly more than they are at present. Current low end pricing is in some cases pretty much a zero margin business.

Yeah I laughed when I read the post thinking that this whole thing is occurring because of the small margins due to competition in the market at least it is on the copper side.

Interestingly the origanl post about the relation between price rise and cable seems a bit swamped under the general complaints about increasing internet costs.

Please note: I have a professional bias towards Vodafone.

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