Vodafone Pricing Plans - NZ Compared to Aus

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aimsy007

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#36469 25-Jun-2009 17:42

Vodafone NZ recorded a $191 MILLION (record profit) for the 2008 year to March! That's you and I and every other poor souls hard earned cash.

I've been a loyal (wavering now) customer of Vodafones for years. Never missed a monthly payment. Upgraded my phones at my own expense. Even promoted Vodafone to many friends!

It is neither unfair nor unreasonable to expect more for the amount we pay. $191 million is not peanuts. There is plenty of room for Vodafone to grow its market share through mobile broadband but to do so means setting plans at a rate that people will be able afford to use them. Imagine being able to use your mobile broadband without needing to check your usage stats every day.

When I compare our pricing plans with those of our cousins across the ditch my tummy turns. Don't tell me they've got a bigger population, I know. Just keep in mind what I have stated above and maybe you too can dream like me......

"I have a dream! I have a dream where my children will be able to walk down the street checking their email/facebook/twitter without being judged for the cost of doing so. I have a dream! I dream that the people of this great country can be informed and connected with the world we live in without needing to re-mortgage! I have a dream that Vodafone will once again see the light and see its customers as people rather than dollar signs."

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#228354 25-Jun-2009 20:25

Company makes profit... pinko's outraged... more news at 10

daman88

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#228381 25-Jun-2009 21:57

Well - if vodafone makes losses - Vodafone won't exist anymore -
No companies love to make losses if they do then they will go out of business.

:)

BTW well done to you that you make every commitment to pay bills and got suck by vampires - hopefully not dry out :D

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exportgoldman

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#228410 25-Jun-2009 23:36

How about simply comparing Vodafone NZ with Vodafone Australia

You can get a FREE iPhone 32GB 3GS with unlimited nationwide call and txting and 2GB of data for AU $114

See Here

http://vodafone.com.au/personal/iphone/3gspricing/index.htm

The Vodafone plan in New Zealand in comparison

http://www.vodafone.co.nz/iphone/16gb-black.jsp

Has all the usual limitations of 600 TXT, a tiny 250 Minutes and 0.5GB of data for $130 and you still have to stump up $199 for the iPhone!

On the cheaper plans from Vodafone Australia you also can get free weeknights and weekend calling.

But hey we all know we are getting ripped blind by Vodafone and Telecom it's the name of the duopoly telco game we have here... I hate them both equally and the National goverment more for allowing it to continue on for so long... :)

Tyler - Parnell Geek - iPhone 3G - Lenovo X301 - Kaseya - Great Western Steak House, these are some of my favourite things.

paradoxsm

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#228420 26-Jun-2009 00:59

I'm paying between 5c-34c to make national/international calls and a maximum of 10c to SMS anywhere worldwide but it's really a bit of a messy setup.

We do get slaughtered here if compared to Australia though, as well as the absurdly cheap calling and sms value, Australia also have a competent call centre with friendly Australian staff (there may be a $2.50 charge on some lower plans), you can pay your handset off over a period INTEREST-FREE (and fee-free) and similar deals.

best thing is, the plans are so incredibly simple to understand, you just get $XXX.XX worth of usage to use how you like it, none of this fancy trickery.

Then there is that unlimited plan....... At least Telecom did come to the party somewhat and provide a similar plan (albeit at a much higher price) on it's old CDMA network.

The best plans I have seen locally are the Compass mobile deals which offer simple, consistent pricing. (http://www.compass.net.nz/residential/mobile/)

nate

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#228424 26-Jun-2009 02:46

aimsy007: There is plenty of room for Vodafone to grow its market share through mobile broadband but to do so means setting plans at a rate that people will be able afford to use them

People can afford to use them, where'd you think the $191 million came from?

Good time to be a Vodafone shareholder.

aimsy007

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#228437 26-Jun-2009 07:52

Yes people can afford to use them but at what cost and is it fair? You may well point out the profits and I am not begrudging Vodafone from making a profit - of course they have too.

My point is that $191,000,000 does give them 'some' room to cut pricing plans. As pointed out there is also huge room for them to grow the business through mobile broadband.

Lower prices = more usage = greater profits = win for Vodafone = win for customers.

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exportgoldman

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#228438 26-Jun-2009 08:11

aimsy007: Yes people can afford to use them but at what cost and is it fair? You may well point out the profits and I am not begrudging Vodafone from making a profit - of course they have too.

My point is that $191,000,000 does give them 'some' room to cut pricing plans. As pointed out there is also huge room for them to grow the business through mobile broadband.

Lower prices = more usage = greater profits = win for Vodafone = win for customers.

Higher prices = less people on network = same amount of income, less capital expenditure.

Scarcity, supply and demand.

Why price your product lower or offer a better service than required to extract the most money from your customers. This is how companies think.

We just happen to have a duopoly telco setup in New Zealand and they have no need to compete on price.

Australia has a healthy telco market with more than two networks in place.

I'm not defending Vodafone, I hate them with the passion usually reserved for grave robbers and petty thieves, but what cha gonna do?

I'm not going to pay my last bill from them totalling $1000 and simply wind up my company the bill is in the name of. :) Make them fight for their money like I had to fight for dialtone on their crappy overloaded, bug ridden network.

Roll on 2 degree's is all I can say

Tyler - Parnell Geek - iPhone 3G - Lenovo X301 - Kaseya - Great Western Steak House, these are some of my favourite things.

magu

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#228441 26-Jun-2009 08:29

exportgoldman: I'm not defending Vodafone, I hate them with the passion usually reserved for grave robbers and petty thieves, but what cha gonna do?

LOL!

I do hope that 2degrees shakes up the mobile market, as even though Vodafone is allowed to post profits, it shouldn't do so while blatantly ignoring what its own sister (VF AU) is doing across the pond.

And to the guys that say: "hey, it's a duopoly and blah-blah-blah", we gotta start complaining somewhere, or it will never change. Waiting for divine intervention?

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freitasm

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#228451 26-Jun-2009 09:18

exportgoldman: I hate them both equally and the National goverment more for allowing it to continue on for so long... :)

Oh, yes. Blame the National party, in power for nine months. The Labour party had, what, nine years, and didn't do anything...

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bcourtney

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#228462 26-Jun-2009 10:22

A business can't be criticised for making a profit - that argument is ridiculous. It's what a business does with the profit that should be criticised if it needs to be. If Vodafone are going to reinvest a good portion of that profit back in to their network then good on them I say.

I'd rather they charge the way they are and actively fix their appalling network issues (voice dropouts, slow data speeds EVERYWHERE and bad cell site handover issues) than see a reduction in my monthly bill and have to live with these performance issues.

I wonder if the businesses you work for run a profit or not? If they do, have you suggested that your bosses begin lowering prices?

daman88

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#228466 26-Jun-2009 10:29

freitasm:
exportgoldman: I hate them both equally and the National goverment more for allowing it to continue on for so long... :)

Oh, yes. Blame the National party, in power for nine months. The Labour party had, what, nine years, and didn't do anything...

LOLz -- how sarcastic :)

Daman88

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exportgoldman

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#228485 26-Jun-2009 11:03

freitasm:
exportgoldman: I hate them both equally and the National goverment more for allowing it to continue on for so long... :)

Oh, yes. Blame the National party, in power for nine months. The Labour party had, what, nine years, and didn't do anything...

Oh no, laughs, I mean the one in power BEFORE the previous labour government, the one which Marice Williamson (spelling?) was the Telecommunications minister and decided that 'light handed regulation' was the way to go, the same one which allowed Telecom to offer 'loyalty' discounts which were thinly hidden prediatory pricing against Telstra's network build in Wellington - marching the pricing when customers had a choice, street by street, house by house.

Labour did nothing either for 4 years, but they then did get the balls up to start splitting Telecom in two...

I think Labour did do a good job once they started by the seperation of Telecom, I know it's not a actual seperation but it's a practical solution and it's a good start.

Tyler - Parnell Geek - iPhone 3G - Lenovo X301 - Kaseya - Great Western Steak House, these are some of my favourite things.

exportgoldman

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#228492 26-Jun-2009 11:12

bcourtney: If Vodafone are going to reinvest a good portion of that profit back in to their network then good on them I say.

I'd rather they charge the way they are and actively fix their appalling network issues (voice dropouts, slow data speeds EVERYWHERE and bad cell site handover issues) than see a reduction in my monthly bill and have to live with these performance issues.

What do you mean they still have network issues? Vodafone finished their 3G network build to 97% of the population more than a month ago! :)

But yes I agree their network is crap, but hey your the smuck :) still paying every month for it - sounds like a good deal to me if I'm running a telco,

Step 1. Underinvest in my network,
Step 2: Overcharge my customers and still have the biggest market share of the duopoly
Step 3 : Profit! - Record breaking that is

Seriously, why would Vodafone do anything differently??? I wouldn't if I was running the company.

Tyler - Parnell Geek - iPhone 3G - Lenovo X301 - Kaseya - Great Western Steak House, these are some of my favourite things.

ockel

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#228508 26-Jun-2009 11:43

Headline figures of profit are relatively meaningless. An issue perpetuated by the "business" media every day.

More importantly what was the return on their investment? The $191m profit would look acceptable if it was earnt on $2bn of equity. Thats the sort of return that one would expect for investing in a uncertain business environment (regulatory and financial risk). And thats assuming that they have recovered the years of underearning during startup and build (ie years that returns are lower than a required return-on-equity hurdle).

Can you put the profit in context aimsy007? And as a business owner what sort of return you'd expect to get on your cold-hard-cash for running a business?

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Aaroona

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#228661 26-Jun-2009 19:56

exportgoldman:
bcourtney: If Vodafone are going to reinvest a good portion of that profit back in to their network then good on them I say.

I'd rather they charge the way they are and actively fix their appalling network issues (voice dropouts, slow data speeds EVERYWHERE and bad cell site handover issues) than see a reduction in my monthly bill and have to live with these performance issues.

What do you mean they still have network issues? Vodafone finished their 3G network build to 97% of the population more than a month ago! :)

But yes I agree their network is crap, but hey your the smuck :) still paying every month for it - sounds like a good deal to me if I'm running a telco,

Step 1. Underinvest in my network,
Step 2: Overcharge my customers and still have the biggest market share of the duopoly
Step 3 : Profit! - Record breaking that is

Seriously, why would Vodafone do anything differently??? I wouldn't if I was running the company.

I would do it different.. unless the CEO of Vodafone is using the XT network for speed and reliability ;) :P

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