Vodafone plans to introduce local call service using mobile phones that also acts as home phones...

Forums › Vodafone New Zealand › Vodafone plans to introduce local call service using mobile phones that also acts as home phones...

tonynz

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Topic # 6376 20-Jan-2006 12:57

http://www.nzherald.co.nz/search/story.cfm?storyid=000DF908-6D89-13CF-A73583027AF1010E

Anyone know anything?

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Reply # 26800 20-Jan-2006 13:06

I suppose the question you have to ask is whether Telecom should be forced to allow Voda to offer this service for free i.e. no mobile interconnection fees. Seriously the definition of a 'fixed line' does become a bit blurred.

After all Voda globally make a more money than NZ makes from exports.

alasta

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Reply # 26803 20-Jan-2006 13:22

My understanding of this proposal is that Vodafone would allocate an 021 and a 'local' number to each of its customers. Calls coming through the 'local' number would be free where the caller is using a landline and is within the 'local' calling area.

The Vodafone customer could only be reached on their 'local' number when they are at home, and Vodafone would implement navigational technology which would detect whether the user's handset was at home or elsewhere. The handset would use the GSM wireless network regardless of whether it is at home or away from home, hence circumventing Telecom's copper network altogether.

Is my understanding actually correct, or have I completely misread the report? What do we actually stand to gain from this?

sbiddle

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Reply # 26804 20-Jan-2006 13:42

Telecom's problem with it is they stand to loose millions in interconnection fees.

If you're outside your local area and somebody rings your landline number your call will be diverted to your mobile and you will pay for incoming call charges.

At present when you ring a mobile from a landline mobile Telecom get their margin on top of the interconnection fee paid to Vodafone - under the new system Telecom will get nothing at all since the divert is handled on Vodafone's network and will be billed to your mobile. Telecom want calls that go to a Vodafone local number to be classed seperately to calls to any other 7 digit PSTN number so Telecom could effectively bill you for calling a Vodafone local number.

Telecom's response is going to be interesting now this is public, they are very clear when it comes to defending the Kiwi share and insisiting that local calling remains free yet seem to want to avoid this now that they have a possible threat.

If I were Vodafone I'd forget about Telecom completely, launch a mobile service with 300 mins of calls per month and a home 3G router with 5Gb of traffic for $100 per month and people will have no need to go near Telecom.

alasta

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Reply # 26807 20-Jan-2006 14:42

If you're outside your local area and somebody rings your landline number your call will be diverted to your mobile and you will pay for incoming call charges.

I could see this being a problem, although people could be given the option to have all calls to their local number declined or sent to voicemail when they're away from home.

At present when you ring a mobile from a landline mobile Telecom get their margin on top of the interconnection fee paid to Vodafone - under the new system Telecom will get nothing at all since the divert is handled on Vodafone's network and will be billed to your mobile. Telecom want calls that go to a Vodafone local number to be classed seperately to calls to any other 7 digit PSTN number so Telecom could effectively bill you for calling a Vodafone local number.

Isn't there already free calling between Telecom and TelstraClear residential customers within the same local area? If so, then the precedent has already been set.

If I were Vodafone I'd forget about Telecom completely, launch a mobile service with 300 mins of calls per month and a home 3G router with 5Gb of traffic for $100 per month and people will have no need to go near Telecom.

This would absolutely crush Woosh, but maybe that's why Vodafone declined the invitation to invest in Woosh.

If Vodafone were to offer this service, I would sign up in a flash. Unfortunately, I think this is a bit idealistic and I would doubt whether it would be economically justifiable in the forseeable future.

Here's an interesting question, though: If Vodafone were to try to encourage people to drop their Telecom landlines, then Vodafone would have to come up with some alternative home broadband service. Maybe affordable Vodafone 3G Internet access isn't totally out of the realm of possibility after all...

Grantis

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Reply # 26812 20-Jan-2006 16:34

alasta:
Here's an interesting question, though: If Vodafone were to try to encourage people to drop their Telecom landlines, then Vodafone would have to come up with some alternative home broadband service. Maybe affordable Vodafone 3G Internet access isn't totally out of the realm of possibility after all...

Now that could potentially be a great idea, providing the speed/data caps/cost & latency were competitive enough.

freitasm

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Reply # 26813 20-Jan-2006 16:41

That's what Vodafone Germany is already doing. I wouldn't mind seeing this around here, but the 3G infrastructure would have to be better - and GPRS as an alternative wouldn't make anyone happy, since it's way worst than dial-up.

I guess it would be more money to spend in infrastructure, money that is being put on the side for HSDPA?

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Reply # 26814 20-Jan-2006 16:52

freitasm: That's what Vodafone Germany is already doing. I wouldn't mind seeing this around here, but the 3G infrastructure would have to be better - and GPRS as an alternative wouldn't make anyone happy, since it's way worst than dial-up.

I guess it would be more money to spend in infrastructure, money that is being put on the side for HSDPA?

I'm fully aware that Vodafone in Germany are already doing this, I read the article! I'm talking about the NZ Market obviously.

freitasm

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Reply # 26816 20-Jan-2006 17:01

Grantis: I'm fully aware that Vodafone in Germany are already doing this, I read the article! I'm talking about the NZ Market obviously.

Hmmm. My point, perhaps not so clearly put, is that perhaps even before thinking on how the New Zealand market is unique, we should consider that it is part of an overall strategy for the entire group, not only to cater for the specific market landscape in this country.

In other words, they probably just want to reproduce here a good experience from overseas, and in the process annoy Telecom New Zealand.

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Grantis

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Reply # 26817 20-Jan-2006 17:07

freitasm:Hmmm. My point, perhaps not so clearly put, is that perhaps even before thinking on how the New Zealand market is unique, we should consider that it is part of an overall strategy for the entire group, not only to cater for the specific market landscape in this country.

In other words, they probably just want to reproduce here a good experience from overseas, and in the process annoy Telecom New Zealand.

Agreed & you can guarantee Telecom will fight it tooth & nail from the Commerce Commissioner to the courts.

johnr

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Reply # 26818 20-Jan-2006 17:12

mmmmm I wonder who has the most $$$$ to fight this out

The sharemarket did not react well to the news

Grantis

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Reply # 26819 20-Jan-2006 17:17

johnr: mmmmm I wonder who has the most $$$$ to fight this out

Vodafone. But my point is that it will take f o r e v e r before we see any results for customers & like Freitasm says, HSDPA & ideally HSUPA would need to be implemented before the broadband component would be viable.

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Reply # 26824 20-Jan-2006 20:22

Grantis:
johnr: mmmmm I wonder who has the most $$$$ to fight this out

Vodafone. But my point is that it will take f o r e v e r before we see any results for customers & like Freitasm says, HSDPA & ideally HSUPA would need to be implemented before the broadband component would be viable.

But how many people actually worry about the speed of their internet? I know us geeks but for your average mum & dad who write a few emails they probably couldn't care less, hence our poor uptake of broadband in NZ in the first place. Many households could actually be saving money by switching to broadband - there are people who are paying Telecom $100 for 2 phone lines and flat rate xtra yet yet could probably be paying them $80 to have a single phone line + ADSL. Most ADSL providers are still trying to market ADSL on the high speed merit which makes a lot of people feel they have no need for it.

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Reply # 26828 20-Jan-2006 22:22

johnr: ....

The sharemarket did not react well to the news

Telecom NZ share tracker(5 day graph, main page here) for anyone interested.

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Reply # 26856 21-Jan-2006 17:34

I think the drop in their share price had more to do with their AAPT annoucement than Vodafone's announcement. I think every Telecom shareholder knows that the company in invincible when it comes to dealing with the commerce sommission! :-)

johnr

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Reply # 26857 21-Jan-2006 17:37

Telecom shareholder knows that the company in invincible when it comes to dealing with the commerce sommission! :-)

This will be interesting to see then (I will be watching the media close on this)

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