Vodafone mobile data rates to drop significantly??

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scottjpalmer

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#11266 12-Jan-2007 17:05

http://www.nzherald.co.nz/section/1/story.cfm?c_id=1&objectid=10418787

I know this is an iPhone article but the most interesting part is the bit from Vodafone about the pricing of Vodafone mobile data in the future!! Sounds promising.

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#57751 12-Jan-2007 22:51

Hmm, seems a bit over the top to me. Without a third and fourth network operator, plus upgrades to the backhaul, there's not sufficient competition to lower prices.

Juha

johnr

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#57752 12-Jan-2007 23:27

juha: Hmm, seems a bit over the top to me. Without a third and fourth network operator, plus upgrades to the backhaul, there's not sufficient competition to lower prices.

Watch this space

sbiddle

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#57759 13-Jan-2007 08:00

It's all going to depend on what business model Vodafone NZ try to capture a greater share of the NZ telecoms market as a whole. If you look at the original ZuHause (AtHome) concept it was to offer mobile and mobile data at rates to complete with fixed line providers. Vodafone's global AtHome model rolled out last May is now very much based around forming partnerships or acquiring ISP's and then offering ADSL packages for data. The new Ericsson "home cells" that are being launched are basically going to create a huge mesh network for Vodafone in the countries they are being deployed but they are a fixed line option and don't use the mobile infrastructure.

NZ could be completely different - Vodafone are going to have the 900MHz bandwidth in NZ to have an extremely high capacity HSDPA network and there is no reason that they won't be able to offer a service offering home line rental and broadband without having to touch the PSTN.. Is this is the case however it would seem a waste of money to have purchased iHug and would also be going against their current global strategy.

alasta

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#57760 13-Jan-2007 08:31

From the Article : Running Apple's new iPhone could in the future cost New Zealand users hundreds of dollars a month.

Given that 1Gb of data costs $49 per month, how exactly is this device going to cost people 'hundreds of dollars a month'? With the iPhone lacking the ability to download music on the move, how will any users of this device even come remotely close to using 1Gb of traffic? This is yet another poorly researched technology article.

sbiddle:
NZ could be completely different - Vodafone are going to have the 900MHz bandwidth in NZ to have an extremely high capacity HSDPA network and there is no reason that they won't be able to offer a service offering home line rental and broadband without having to touch the PSTN.. Is this is the case however it would seem a waste of money to have purchased iHug and would also be going against their current global strategy.

Global companies often use New Zealand as a testing ground for new concepts, so anything is possible here. I have always felt that Vodafone have probably purchased Ihug for the same reason that Woosh purchased Quiksilver; to protect and expand their customer base in markets where their wireless offering is not able to deliver apon users' needs in the short to medium term.

sbiddle

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#57762 13-Jan-2007 09:09

alasta: I have always felt that Vodafone have probably purchased Ihug for the same reason that Woosh purchased Quiksilver; to protect and expand their customer base in markets where their wireless offering is not able to deliver apon users' needs in the short to medium term.

If that is the case was the $41 million that they spent too much? At the end of the day anybody buying an ISP at present is really only buying customers. Vodafone obviously figured the setup costs to didn't justify starting from scratch (even though a mate of mine who works for a large ISP reckons you could roll out a nationwide ISP with billing systems, backend and call centre for $10 million and have some change).

I think Vodafone are sitting on the fence waiting to see whether it really is possible to deliver broadband and phone services to a customer using GSM/WCDMA/HSDPA/HSUPA or whether having a fixed line still is the best option to deliver services to a customer. There will always be customers who will want to stick with a regular PSTN line and ADSL but anything that uses copper is going to involve paying money to Telecom. I personally think if Vodafone can delivery a HSDPA/HSUPA WiFi home router in 12that allows customers to simply plug in their existing phone, keep their existing number and give them wireless broadband all at a reasonable price that it will cause a serious dent in Telecom's revenue. TelstraClear are oviously going to be doing this and if CallPlus aren't bluffing with their WiMAX there are potentially at least 3 players trying to do the same thing - the NZ market is going to be very very interesting over the next couple of years.

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#57767 13-Jan-2007 11:20

sbiddle: If that is the case was the $41 million that they spent too much?

I guess that depends on how many customers they have aquired as a result of purchasing Ihug. Looking at this on a cost per customer basis gives you some perspective on it.

I think Vodafone are sitting on the fence waiting to see whether it really is possible to deliver broadband and phone services to a customer using GSM/WCDMA/HSDPA/HSUPA or whether having a fixed line still is the best option to deliver services to a customer.

I think one of the problems is the general perception that wireless is expensive and inferior to fixed line alternatives, and this will take some time to change this. Contrary to popular belief, I believe that the New Zealand public are very wary of emerging technologies.

There will always be customers who will want to stick with a regular PSTN line and ADSL but anything that uses copper is going to involve paying money to Telecom.

Didn't Ihug express some interest in offering naked DSL once unbundling is implemented? I would have thought that Vodafone would aim to offer a fully wireless package for people with basic Internet requirements, while offering a naked DSL option for people who require better connection speeds or larger data caps.

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juha

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#57768 13-Jan-2007 11:27

Well, the stated aim for Vodafone is to become a full-service telco offering both fixed and wireless broadband. Buying Ihug lets Vodafone do just that, in the same manner as Telecom. Convergence, dudes, convergence... :)

NZers are quite good about new technology I find (we've got two types of 2G/3G, Woosh and Wired Country wireless, Wifi, cable and DSL, with only really FTTx missing from the mix) but the problem is that we're a low-income country having to buy high-income country gear. Without volume adoption, it's hard to bring out services at prices people can pay.

Juha

stacey1122

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#57863 14-Jan-2007 16:31

yeah hopefully vodafone's data rates do drop. because no one would get their 3g vodem for a home modem because you only get 1gb of data. watching youtube,playing games,download music videos and song from itunes would use alot more than 1gb. and if the iphone has a full internet browser,then i'm sure people will be going into youtube and sure they wouldn't use more than 5gb a month,i'm sure they'll use about 3gb a month.
i reckon if vodafone doesn't drop their data rates,telecom will, because telecom are probably scared because they're going to miss out on the iphone so they will need somethng to keep it's customers.

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#57865 14-Jan-2007 16:44

Hmm.. You can already get 2GB of data on Vodafone for $59.95 per month. I think that's pretty reasonable.

alasta

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#57870 14-Jan-2007 17:30

stacey1122: yeah hopefully vodafone's data rates do drop. because no one would get their 3g vodem for a home modem because you only get 1gb of data.

In the future people will be hungry for larger data caps but for now plenty of people can get by on 1Gb of data. I use less than that most months, and this month I expect to use about 1.5Gb which is a heavy month for me.

i reckon if vodafone doesn't drop their data rates,telecom will, because telecom are probably scared because they're going to miss out on the iphone so they will need somethng to keep it's customers.

That will never happen because it would cannibalise Telecom's fixed line revenue. Telecom's data pricing has always been reactive rather than proactive.

tonyhughes

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#57874 14-Jan-2007 18:35

stacey1122: i reckon if vodafone doesn't drop their data rates,telecom will, because telecom are probably scared because they're going to miss out on the iphone so they will need somethng to keep it's customers.

AHAHAHAHAHHAHAHAHHAHAHA oh thats the funniest thing I have read all day.

I can just see it now - every last Telecom mobile customer moving to Vodafone because they *might* get the iPhone at $1000 odd dollars.

I can tell you now, that despite my impression that the iphone is pretty 'nifty', that 99% of users on BOTH networks wont give a flying ratburger about it, let alone change networks for it.

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tonyhughes

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#57875 14-Jan-2007 18:39

stacey1122: yeah hopefully vodafone's data rates do drop. because no one would get their 3g vodem for a home modem because you only get 1gb of data. watching youtube,playing games,download music videos and song from itunes would use alot more than 1gb.

Its very shortsighted for anyone to think that the internet consists of:

YouTube
Online Gaming
Music Videos
iTunes Music Store

There are thousands of other activities that people around the world participate in every day, and you would be surprised how many people actually dont do any of the above list of four things.

I know several people for whom 2GB would be more than enough data for their meagre internet needs.

and if the iphone has a full internet browser,then i'm sure people will be going into youtube and sure they wouldn't use more than 5gb a month,i'm sure they'll use about 3gb a month.

I watch about 4 YouTube videos a month. Usually short ones (like 2 minutes). And you are sure that I will use 3GB a month on my iPhone for doing so? I think you are wrong.

juha

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#57876 14-Jan-2007 19:12

I know several people who could get by on 500MB-1GB a month. They're the ones who literally use the Internet for email only, don't update Windows (one person is using Win98), and turn off the DSL router after reading their messages. Sure, there's a bit of web browsing too, but not much. Those people would be fine on dial-up, or even sending CDs via the post/courier. In fact, they could just ask their mates with Internet connections to pass things on for them, or go to an Internet cafe and pay by the hour.

They remind me of the people in the former East Germany who didn't mind that one day, the shops only sold oranges, or another day, only onions.

The Venice Project PPTV consumes around 415MB an hour. Think about that.

Juha

johnr

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#57880 14-Jan-2007 21:03

I work for vodafone and I tell you I will not be wanting a iphone

Give me a Nokia N95 anyday

I don't see how TCNZ can see this phone as a threat and I think they never will

juha

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#57882 14-Jan-2007 21:07

Same here. I demand an N95...

Juha

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