Do lower mobile termination rates mean lower costs for those on Vodafone retired plans

Forums › One New Zealand (including Vodafone, WxC, Farmside) › Do lower mobile termination rates mean lower costs for those on Vodafone retired plans

heavyusr

83 posts

Master Geek

#103157 31-May-2012 14:13

Was reading the com com decision from 2011 to drop call rates by 1 april 2012 and text rates dropped already

Would there be lower costs for people still on the retired Vodafone prepay plans? Some of these plans charge 20 cents for texts and $1.43 calls to other cell networks and I do not think the prices have changed since the com com decision

http://www.vodafone.co.nz/support/mobile-plans/retired-plans/

http://cio.co.nz/cio.nsf/news/vodafone-slams-mobile-termination-decision

sbiddle

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Biddle Corp

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#633443 31-May-2012 14:30

Why would they change? They are legacy plans.

simon14

1889 posts

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#633607 31-May-2012 18:40

The ComCom did not regulate the retail rate, they regulated MTR's.

richms

28168 posts

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#633946 1-Jun-2012 10:26

Any contract on the older plans was entered into with full knowledge of the rates and the duration of the contract. No, there should be no reduction on those rates other than as a form of goodwill towards those customers.

Richard rich.ms

wanghou168

453 posts

Ultimate Geek

#633970 1-Jun-2012 10:44

not necessarily
it only means they are more than happy for you to switch to the new plans, since all the new plans are all greater or equal to $40 per month
I remember seeing the termination cost for the mega plan is like 20 bucks or something close
but most of retired plans only consist on net minutes, so I suppose the cost should be significantly lower

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heavyusr

83 posts

Master Geek

#636095 5-Jun-2012 14:20

sbiddle: Why would they change? They are legacy plans.

The plans still work even though people can not sign up to them anymore
Should only new customers receive a price reduction?
Has vodafone ever increased data caps for existing customers on their broadband?

johnr

19282 posts

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#636101 5-Jun-2012 14:26

Retired plans mean EOL so not sure why you are expecting pricing changes

ComCom can not adjust retail pricing only wholesale, Telco to Telco not Telco to customer

johnr

19282 posts

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#636103 5-Jun-2012 14:27

heavyusr:
sbiddle: Why would they change? They are?legacy plans.

The plans still work?even though?people can not sign up to them anymore
Should only new customers receive a price reduction?
Has vodafone ever increased data caps for existing customers on their broadband?

Not on retired plans

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sbiddle

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#636191 5-Jun-2012 16:52

heavyusr:
sbiddle: Why would they change? They are legacy plans.

The plans still work even though people can not sign up to them anymore
Should only new customers receive a price reduction?
Has vodafone ever increased data caps for existing customers on their broadband?

When you enter into a fixed price contact with a provider it's at a fixed price for the period you remain on that conttact. You want VF to reduce pricing on legacy plans, however you can't have it both ways, and I can guarantee if Vodafone changed your plan automatically and moved you (for example) to min+min plan from a min+sec plan you'd be posting on here criticising Vodafone for changing plan types automatically.

If you want cheaper prices move to a new plan, you don't have to be a new customer. Telco's typically don't migrate users when they introduce new plans because they are very rarely simply simple price reductions, they are typically quite fundamentally different. No current Vodafone plan offers me the same data or minutes I have on my legacy plan for example.

Paulthagerous

698 posts

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#636202 5-Jun-2012 17:16

heavyusr:
Should only new customers receive a price reduction?

There is a difference between being a new customer and being on a current plan. If you are on an old plan that they no longer offer for sale then no, you shouldn't get a price decrease. If you don't like the old pricing change to a new plan, if you prefer your old deal stay put.

If you are on a current plan and the minutes increase then you probably would get the same as a new signup. But having all the old plans updated will encourage people to stay on them longer, and generally there is a good reason they have been grandfathered (often just replaced with something better though). The more plans you offer the more confusing it is for customers to figure out what is better for them, more the telco staff have to remember, more the system has to cope with in general. So this is a good way to encourage people to the new plans.

PS - I realise that there is some level to which multiple plans are good, but after a point more isn't better.

Paulthagerous

698 posts

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#636204 5-Jun-2012 17:19

sbiddle: Telco's typically don't migrate users when they introduce new plans because they are very rarely simply simple price reductions, they are typically quite fundamentally different.

+1, and in my experience if the new plan will be better for the consumer in absolutely every way they will migrate everyone but as said, but if there is even 1 respect that it is worse they won't, no matter how small it is.

NonprayingMantis

6434 posts

Uber Geek

#636210 5-Jun-2012 17:30

Whatever the price of MTRs, the net efect to the industry in terms of overall revenue and cost is zero, so therefore the net effect to the consumer is also zero.

some telcos will win and some will lose from a change in MTRs, but overall effect on industry is neutral. (it;s a zero-sum game)

From Vodafone's poiint of view, they actually LOST money from the MTR change, so if anything one would expect their pricing to go up to compensate for the lost revenues.

Wade

2225 posts

Uber Geek

#636247 5-Jun-2012 19:10

The easiest option would be for OP to change to a new plan to obtain any benefit.... unless of course it is of more benefit to the OP to stay on the old plan in which case it all becomes moot