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Topic # 30927 25-Feb-2009 23:38
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I find that vodafone's pricing here in nz is very expensive. Calling, Txting is not priced well and is not afforable for the common man. Forget the plans, even the prepaid is expensive. I would like to quote straight from a article in NZ Herald " The lack of real competition means that for years New Zealand has ranked well up the international league table when it comes to the cost of making mobile calls. The latest comparison shows a New Zealand subscriber on a medium-priced calling plan is paying about 145 per cent of the OECD average."
This quote comes straight from the page - "http://www.nzherald.co.nz/technology/news/article.cfm?c_id=5&objectid=10557765"

I know i cannot influence much by this topic, as i know that this may not even reach the right person but i just want to put my point across.
I find even text expensive and this is not me alone but a whole lot of friends who feel they are getting ripped off. why cant basic services like Text are not free.As per my view, I think atleast 500 txt msgs per month should be a standard package - say a minimum with superprepay which could cost 1$ for 500 text per month which can be carried forward would be good enough to cover the basic user - a person who just wants mobile to survive. anything above that would come under a plan like txt2000. and to make it more worthwhile, it should be called txt5000 for the same amount 10$.

I know this topic can cause fury amongst readers, but i would like to request them to put themselves in layman shoes. for a person who is struggling to make ends meet, say who is searching for a job and just needs a mobile as a necessity and not a luxury. In these recession times, its even harder with rising living costs. companies like ASB are coming up with loans to help out businesses, vodafone no doubt has a international presence and has pockets more than or as good as any other carrier in the world, so why are is the company making the most out of a small and meek country.

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  Reply # 198123 26-Feb-2009 01:32
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New Zealand's low population density makes the business case for more mobile operators fairly poor, if it was viable there would be more operators, more competition and lower prices.

The fact is the telco industry requires large capital investment.  It's not in Telecom's or Vodafones best interest to get involved in a price war or lower prices as they have both invested a lot of capital in building their networks and are continuing to invest in 3G, HSPA etc.  Besides their responsibility is to make a return on investment for their shareholders who took (and are taking) the risks of investing in building the networks in the first place.

I am curious as to why you singled out Vodafone and don't mention Telecom, it takes two to make a duopoly.

Anyway a third mobile operator: New Zealand Communications has been establishing a mobile network, if they mange to get up and running it will have a positive effect on prices for consumers.  However there are some doubts if they can succeed, survive and get enough funding to develop.  Their coverage is only going to be in main centers for quite a while.  News articles about NZ comms estimate they will have to invest $300-400 million dollars to complete a national network.

Finally, I disagree with your premise that a mobile is essential, a mobile phone is not a necessity it is a convenience.

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  Reply # 198130 26-Feb-2009 05:39
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Ragnor:
Finally, I disagree with your premise that a mobile is essential, a mobile phone is not a necessity it is a convenience.


+1 on that, and what a convenience it is! Can't wait for the 3rd operator to finally go live, and the fourth and the fifth ....

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  Reply # 198253 26-Feb-2009 19:07
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I'm actually happy with the current pricing structure.

With add on's such as Family and BestMates, this makes it reall affordable to call and text the people you most often communicate with. For example, the cost of calling my bestmate works out to be around 1c a minute.

ajw

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  Reply # 198278 26-Feb-2009 21:30
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Ragnor: New Zealand's low population density makes the business case for more mobile operators fairly poor, if it was viable there would be more operators, more competition and lower prices.

The fact is the telco industry requires large capital investment.  It's not in Telecom's or Vodafones best interest to get involved in a price war or lower prices as they have both invested a lot of capital in building their networks and are continuing to invest in 3G, HSPA etc.  Besides their responsibility is to make a return on investment for their shareholders who took (and are taking) the risks of investing in building the networks in the first place.

I am curious as to why you singled out Vodafone and don't mention Telecom, it takes two to make a duopoly.

Anyway a third mobile operator: New Zealand Communications has been establishing a mobile network, if they mange to get up and running it will have a positive effect on prices for consumers.  However there are some doubts if they can succeed, survive and get enough funding to develop.  Their coverage is only going to be in main centers for quite a while.  News articles about NZ comms estimate they will have to invest $300-400 million dollars to complete a national network.

Finally, I disagree with your premise that a mobile is essential, a mobile phone is not a necessity it is a convenience.



New Zealand has a population of only 4.3 million and has only two mobile operators. In Panama with a population of only 3.2 Million they have four mobile operators all making a profit.
Vodafone NZ is the highest performing subsidiary in the Vodafone empire for a mobile market share of 52%.
Don't kid yourself both Vfone and Telecom are making millions. Also mobile in NZ alone has a turnover of $2.3 Billion per annum. There is plenty of room for another two operators to build networks and still make a profit.

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Reply # 198281 26-Feb-2009 21:50
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There is plenty of room for another two operators to build networks and still make a profit.


Where are they then?




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  Reply # 198282 26-Feb-2009 21:51
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New Zealand has a population of only 4.3 million and has only two mobile operators. In Panama with a population of only 3.2 Million they have four mobile operators all making a profit.
Vodafone NZ is the highest performing subsidiary in the Vodafone empire for a mobile market share of 52%.

Don't kid yourself both Vfone and Telecom are making millions. Also mobile in NZ alone has a turnover of $2.3 Billion per annum. There is plenty of room for another two operators to build networks and still make a profit.

 

Lol, Panama is tiny compared to NZ.  New Zealand will never have comparable infrastructer to other countries of similiar population size but smaller in land mass.

 

Imagine how much it costs to cover Panama with mobile coverage (78,200 SQKM) versus NZ with a land size of 268,000 SQKM!!!


ajw

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  Reply # 198284 26-Feb-2009 21:58
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itxtme:


New Zealand has a population of only 4.3 million and has only two mobile operators. In Panama with a population of only 3.2 Million they have four mobile operators all making a profit.
Vodafone NZ is the highest performing subsidiary in the Vodafone empire for a mobile market share of 52%.

Don't kid yourself both Vfone and Telecom are making millions. Also mobile in NZ alone has a turnover of $2.3 Billion per annum. There is plenty of room for another two operators to build networks and still make a profit.

 

Lol, Panama is tiny compared to NZ.  New Zealand will never have comparable infrastructer to other countries of similiar population size but smaller in land mass.

 

Imagine how much it costs to cover Panama with mobile coverage (78,200 SQKM) versus NZ with a land size of 268,000 SQKM!!!



Isn't it amazing that the govt today announced they are going ahead with a fibre optic build out. Perhaps with your reasoning they must have it all wrong to.

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  Reply # 198288 26-Feb-2009 22:03
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Panama's population density is more than 3x higher than New Zealands!

In my opinion the fact that the government is having to get involved in FTH is actually a strong sign that its not economically viable or attractive to private companies to build networks in New Zealand.

Also someone provide a link to the source for information on how Vodafone NZ is the best performing Vodafone subsidary, if it exists...

ajw

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  Reply # 198294 26-Feb-2009 22:40
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Ragnor: Panama's population density is more than 3x higher than New Zealands!

In my opinion the fact that the government is having to get involved in FTH is actually a strong sign that its not economically viable or attractive to private companies to build networks in New Zealand.

Also someone provide a link to the source for information on how Vodafone NZ is the best performing Vodafone subsidary, if it exists...



Vodafone New Zealand remains a stand-out performer, with its share of the mobile market appearing to have edged up above 60 percent. In September, it reported an 18 percent jump in net profit to a record $191 million for the year to March. Its pre-tax profit margin rose to 15 percent of revenue.

The subsidiary agreed to pay $742 million in dividends to its British parent, after an earlier bumper $500 million dividend in 2006.

http://www.stuff.co.nz/4758986a13.html

Also do a search for Arun Sarin the ex CEO of Vfone. National Business Review 2004

 




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  Reply # 198299 26-Feb-2009 23:09
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ajw:
Ragnor: Panama's population density is more than 3x higher than New Zealands!

In my opinion the fact that the government is having to get involved in FTH is actually a strong sign that its not economically viable or attractive to private companies to build networks in New Zealand.

Also someone provide a link to the source for information on how Vodafone NZ is the best performing Vodafone subsidary, if it exists...



Vodafone New Zealand remains a stand-out performer, with its share of the mobile market appearing to have edged up above 60 percent. In September, it reported an 18 percent jump in net profit to a record $191 million for the year to March. Its pre-tax profit margin rose to 15 percent of revenue.

The subsidiary agreed to pay $742 million in dividends to its British parent, after an earlier bumper $500 million dividend in 2006.

http://www.stuff.co.nz/4758986a13.html

Also do a search for Arun Sarin the ex CEO of Vfone. National Business Review 2004






You still can't compare Panama to New Zealand based on just population. You have to consider land mass also.... New Zealand has a lot more land to cover than Panama so this comparison doesn't make sense.


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  Reply # 198300 26-Feb-2009 23:11
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Well since 1998 Vodafone have invested $2 billion dollars in their network in NZ you don't think they deserve a return on investment?

Look at this way $190 million profit in 2008 from ~2.2 million customers is about $80 per customer in profit per year, that's not very outrageous.  They made a small profit on each customer for the year and they have 60% market share so they made a decent profit for the year, shock horror... how dare they!!@1111

They aren't a charity you know!



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  Reply # 198302 26-Feb-2009 23:15
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Thanks for all your replies till now. Keeping us on the topic, i would like vodafone to bring up small initiatives from time to time inorder to offer more variety and lower the price which will eventually grab more market and hence more revenue. I suggest - 
50 free text straight away when you recharge for the minimum 20$.
give small packages - like 1000 txt for 2$. there are so many ppl out der who would just want to msg jus for conveying small msgs now and then. not for hardcore texters. they dont have to commit to 10$. 
increase txt2000 to txt5000 to make it equivalent to above - so that the cost remains the same. 
i think these small steps will come a long way to grab more customers. you could also see in this way - customers who are not currently on txt2K will want to give txting a try for just 2$, and once they get the hang of it they will txt more and eventually touching the target of 10$. now imagine this multiplied by the number of new customers doing the same.

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  Reply # 198314 27-Feb-2009 01:22
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sep11guy:
give small packages - like 1000 txt for 2$. there are so many ppl out der who would just want to msg jus for conveying small msgs now and then.


2000 texts per month would be 66 txt's per day which sounds like a reasonable number of txts per month and at $10 per month it sounds like a reasonable price too.  at $2 for 1000 txt it would be way less than 1 cent per txt and that just sounds too cheap to me.  perhaps a $2/month plan for 100 or so txts might be reasonable.  how often is "now and then" anyway?  At 20 cents per txt (i.e. if you were not on a bulk plan) thats $2000 which would be outrageous of course.




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  Reply # 198357 27-Feb-2009 10:39
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sep11guy:
Thanks for all your replies till now. Keeping us on the topic, i would like vodafone to bring up small initiatives from time to time inorder to offer more variety and lower the price which will eventually grab more market and hence more revenue. I suggest - 
50 free text straight away when you recharge for the minimum 20$.
give small packages - like 1000 txt for 2$. there are so many ppl out der who would just want to msg jus for conveying small msgs now and then. not for hardcore texters. they dont have to commit to 10$. 
increase txt2000 to txt5000 to make it equivalent to above - so that the cost remains the same. 
i think these small steps will come a long way to grab more customers. you could also see in this way - customers who are not currently on txt2K will want to give txting a try for just 2$, and once they get the hang of it they will txt more and eventually touching the target of 10$. now imagine this multiplied by the number of new customers doing the same.



Vodaofne's plans are structured in a way so that heavey users don't have to pay the same rate as light users. If you are only going to send the odd text, then you pay the market rate at 20c each. If you text a lot, then you buy a bulk pack for $10.

If Vodafone offered $2 for 100 text msgs, then Telecom would obviously have to copy in order to be competitive. This would result in less revenue for both mobile operators and no new customers. What’s the point?

I believe its up to government to regulate the industry to bring in more competition so prices fall, we can't expect Vodafone and Telecom to voluntarily put their prices down to be nice....

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  Reply # 198361 27-Feb-2009 11:01

It's the Commerce Commission that says NZ's charging is so high - the OECD rankings put NZ in the top half of the OECD when it comes to value. That's based on Vodafone's Base plans - and the Commerce Commission doesn't include them when calculating local prices.

It's something of a bone of contention for us - we have plans that are world class yet ignored by the Commission when it decides how well NZ is doing. I for one don't think that's fair.

You can get unlimited calls/TXTs/video calling to one other person for $6/month with Best Mate - an offer so good Telecom has now moved to match it. You can sign up three other people and all of you can call or TXT each other as much as you like and it costs $20/month off one of you with Family. That's a fantastic offer and means in these difficult economic times family groups, friends even small businesses can stay in touch even when they're far away.

Cheers

Paul




Paul Brislen
Head of Corporate Communications
Vodafone

http://forum.vodafone.co.nz


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