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BDFL - Memuneh
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Topic # 14655 14-Jul-2007 11:01
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Last month I've requested to have my TelstraClear number ported to the VFX VoIP service. It all worked fine, but my last bill still had my phone line charges in it. After querying with TCL, I was told this would be credited in the next bill.

I hope so, because today I got a letter:

From 1 August 2007 TelstraClear will be increasing the InHome PhoneLine rental charge and the charge of InHome TV.

The price of your InHome TV package will increase $1.13 per month.
You InHome PhoneLine rental will also increase by $2.00 per month to $34.95.

Now here comes the interesting (and money saving thing): VFX charges only $11.25 per month, and I just received an e-mail from them saying that users of their broadband services are exempt of the phone rental charges!

In my case this is not applicable, because I still use TelstraClear cable-modem service, because it's simply impossible to beat it in terms of speed when compared to DSL solutions. In all is not a bad solution, because DSL users who want to use VoIP still have to pay the phone line rental to Telecom New Zealand (until September 2007 that is).

TelstraClear should really jump, and "make the most of now" (as stated on Vodafone New Zealand's branding ads). They have a better IP infrastructure and better performing network. They should really invest in bringing the 25 Mbps services out sooner than later, redesign their on-line services, provide IP-based solutions such as place shifting (Slingbox), VoIP, and more.

Now, don't think I am writing here just for us to read and discuss - I actually talked to a couple of TelstraClear folks this week here in Wellington, and while it seems they know all about this - well, let's just say it would help if we could just put our voices togheter.

But seriously, increasing the phone line rental? What about making voice mail free then?

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  Reply # 78049 14-Jul-2007 11:35
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It's going to be very interesting to see how Telecom and TCL decide to compete with VoIP solutions. They will obviously both have VoIP solutions of their own and it will be very interesting to see how they can justify the difference between a POTS solution and VoIP solution when the VoIP solution quite simply has to be priced somewhere between $10-$20 per month because that's where the worldwide market is at.

Will we see the price of POTS rentals drop in the future? The biggest thing to remember is we're now going through the exact reversal of where we were 10-12 years ago. Back then 100% of Telecom's income came from a POTS line and calling. That revenue was severly inflated when it doubled overnight due to people discovering the internet. Now we're in a situation where the internet becomes the primary source of income and the POTS revenue will disappear. ARPU will now slowly decline over time and there is nothing that can be done to reverse this.

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