Vodafone profit down, My advice

Forums › One New Zealand (including Vodafone, WxC, Farmside) › Vodafone profit down, My advice

tombrownzz

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#69825 13-Oct-2010 18:01

Vodafone profit is down from last year:
http://topnews.net.nz/content/28838-vodafone-profit-pushed-down-high-costs-entry-level-bearings

Now I am no rocket scientist but if you compare vodafone vs 2degrees prepay plans you get this:

Vodafone Simply Prepay
49 cents per minute
12 cents per text

2 Degrees Prepay
44 cents per minute
9 cents per text

These plans are base plans with no addons. 2degrees have a cheaper base plan than vodafone.

If vodafone really wanted to take on 2degrees they should match 2degrees by lowering the cost of calling and texting on their Simply Prepay and Supa Prepay plans. Then all vodafone has to do is at least match 2degrees add ons then they will be no difference between vodafone and 2degrees so people may stay on vodafone.

I can't believe vodafone is letting a reseller of their services offer cheaper plans.

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BDFL - Memuneh
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#391448 13-Oct-2010 18:07

2degrees is not a "reseller". They have their own 2G and 3G networks in the main centres, and have a roaming agreement with Vodafone. They pay for their use.

If you want to compare Vodafone to its "resellers", look at Orcon, Slingshot and TelstraClear mobile offerings instead.

tombrownzz

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#391453 13-Oct-2010 18:20

ok well for a smaller carrier than vodafone I wonder why their base plans are cheaper than vodafone.

robbyp

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#391456 13-Oct-2010 18:25

tombrownzz: ok well for a smaller carrier than vodafone I wonder why their base plans are cheaper than vodafone.

It's called competition. Even if they are losing money at the moment, their aim is to increase their cusomter base, which makes their company worth more in the long run. A lot of businesses do it, they undercut their competitors in order to gain market share. The problem comes when competition is too cut throat, and the company isn't able to offer a sustainable business model.

If they didn't have lower prices, then no one would switch, as they need a point of difference. Apart from the lower fees, the reason why I got my entire family to switch for VF to both 2 degrees and XT, was the fact that they charge $1 for support. If they hadn't introduced that fee, I probably wouldn't have got them to switch.

NonprayingMantis

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#391460 13-Oct-2010 18:28

most of Vodafone's customer haven't switched to 2degrees.

If they changed their pricing to try and get back the few who have switched they probably wouldn't make enough money on the winbacks to offset the majority who now pay less.

e.g. 1m customers with ARPU of $15 is better than 1.2m customers with ARPU of $10

freitasm

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#391462 13-Oct-2010 18:28

robbyp: Apart from the lower fees, the reason why I got my entire family to switch for VF to both 2 degrees and XT, was the fact that they charge $1 for support. If they hadn't introduced that fee, I probably wouldn't have got them to switch.

And now Vodafone realised, at last, how dumb it is to charge for support and they stopped doing it.

sbiddle

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#391464 13-Oct-2010 18:29

I'd be interested on your views if Vodafone bettered every 2degrees offering in the market.

Would you then be accusing Vodafone of being anti competitive and trying to put 2degrees out of business? Or would you consider it to be OK?

michaelmurfy

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#391465 13-Oct-2010 18:29

robbyp: was the fact that they charge $1 for support. If they hadn't introduced that fee, I probably wouldn't have got them to switch.

I'm positive they dropped that $1 fee for support about 2 months or something ago.
Then again, I am on-account so don't have to pay a cent to call up support.

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freitasm

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#391466 13-Oct-2010 18:30

NonprayingMantis: ... the few who have switched...

From a good source, the majority of ported numbers to 2degrees were previously Vodafone customers.

Looking at 2degrees numbers I would say the number of people who moved away from Vodafone is a good percentage, one that no operator would like to see going away.

robbyp

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#391474 13-Oct-2010 18:35

michaelmurfy:
robbyp: was the fact that they charge $1 for support. If they hadn't introduced that fee, I probably wouldn't have got them to switch.

I'm positive they dropped that $1 fee for support about 2 months or something ago.
Then again, I am on-account so don't have to pay a cent to call up support.

Have they dropped it? I wasn't aware of that. I was told by Paul from VF that they wouldn't ever remove it. I guess competition has meant they are matching what other providers are doing.

robbyp

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#391476 13-Oct-2010 18:36

freitasm:
NonprayingMantis: ... the few who have switched...

From a good source, the majority of ported numbers to 2degrees were previously Vodafone customers.

Looking at 2degrees numbers I would say the number of people who moved away from Vodafone is a good percentage, one that no operator would like to see going away.

Yes I heard that mentioned on Radio NZs business program.

oxnsox

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#391492 13-Oct-2010 19:37

freitasm:
NonprayingMantis: ... the few who have switched...

From a good source, the majority of ported numbers to 2degrees were previously Vodafone customers.

Looking at 2degrees numbers I would say the number of people who moved away from Vodafone is a good percentage, one that no operator would like to see going away.

But is that number a significant percentage for VF..... and did Telecom lose a similar number in % terms.

alasta

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#391493 13-Oct-2010 19:38

I can't imagine Vodafone getting into a price war with a smaller player. They're more likely to use their funky marketing machine and their global influence to flex their muscle in the market.

oxnsox

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#391495 13-Oct-2010 19:45

Maybe all the prepay customers that used to ring 777 to find out what time it was were the ones that switched..... So VF could drop the fee and 2deg got a bunch of customers.....

robbyp

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#391551 13-Oct-2010 21:36

alasta: I can't imagine Vodafone getting into a price war with a smaller player. They're more likely to use their funky marketing machine and their global influence to flex their muscle in the market.

I think their current simply prepay plan has been created directly to compete with 2 degrees. If VF & TC keep losing customers, 2 degrees won't be a small player for too long.

blakamin

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#391675 14-Oct-2010 10:13

freitasm:

If you want to compare Vodafone to its "resellers", look at Orcon, Slingshot and TelstraClear mobile offerings instead.

Yup, TCNZ = 29c a minute, no monthly fee for 2 years and 500 free texts... Shame about the crappy handset!

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