Fixed Term on 3G Broadband? Why not!

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alasta

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#9397 13-Sep-2006 12:52

A lot of people here have recently had good reason to be critical of Vodafone compelling their customers to sign term contracts, but it seems that you'd be mad to take 3G broadband on an open term basis.

If you're taking up the 1Gb 3G broadband plan, then you receive a subsidy of $330 on the Vodem, but early termination of the term contract is $300 or less depending on the point at which it is terminated. On top of that, a $10 discount on the monthly charge is offered to those who take up a term contract.

Am I missing something, or am I right in saying that it makes absolutely no economic sense to go open term with this deal?

tonyhughes

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#46018 13-Sep-2006 15:38

Hmmm... whats the point of them asking you to sign a contract if its cheaper to cancel it than keep it?

How odd.

Mind you - everyone complains about the high cost of getting out of contracts. Perhaps they are just thinking outside the rhombus?

freitasm

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#46030 13-Sep-2006 16:14

Contracts = insurance against number portability.

tonyhughes

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#46037 13-Sep-2006 18:51

freitasm: Contracts = insurance against number portability.

in this case tho we are talking about a data device though.,, I don't see the sense in the contract being so cheap to break (from a vfnz perspective)

from a customer perspective - great trend...

BrentR

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#46040 13-Sep-2006 19:01

The ETC's on the You Choose plans are pretty low also

johnr

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#46045 13-Sep-2006 19:12

Jeffthechef: The ETC's on the You Choose plans are pretty low also

Yer I noticed that my partner signed up for " you choose " and ETCs were $40 + GST

SNicolle

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#46050 13-Sep-2006 20:12

maybe they are playing on peoples complacency, although it doesn't explain the price differential to exit charges but voda my be offering a favourable discount to get in and people being too lazy to exit the contract early

alasta

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#46054 13-Sep-2006 20:28

It makes me wonder if Vodafone have inflated the retail price of the Vodem to try and turn people away from the open term option. After all, $430 seems awfully expensive for a communication device which has no display, speaker, memory, keypad, etc. Does anyone know what a similar device would retail for overseas?

In any case, one still has to wonder why they would offer the open term option at all, although I suspect a lot of people would object to a 24 month committment, and relatively few would look think to look at the contract exit fees.

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juha

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#46062 13-Sep-2006 20:58

They seem to go for US$399... nice high-margin devices.

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lapimate

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#46064 13-Sep-2006 21:20

And doesn't the Vodem have a bit of cable? Where's the BT? (Oh yes, BT only developed a few years ago so too soon to incorporate it - may be a passing fad.) Vodafone says "you can carry Vodem around in your pocket" but you cannot (conveniently) USE it.

juha

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#46099 14-Sep-2006 07:49

lapimate: And doesn't the Vodem have a bit of cable? Where's the BT? (Oh yes, BT only developed a few years ago so too soon to incorporate it - may be a passing fad.) Vodafone says "you can carry Vodem around in your pocket" but you cannot (conveniently) USE it.

Here you go, Vodem with cable:

Vodem

Juha

freitasm

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#46100 14-Sep-2006 08:26

Ther's a reason for that. I was told that Vodafone wants to reach further, and Bluetooth is not something that the non-savvy user can easily configure - and they are correct on that. It sounds simple, but a lot people have problems with a simple concept as "use it as it would be the cable, without the cable". People don't get it!

The vodem is easy to use. Plug it and the drivers are loaded and the dialer starts. Click connect and that's it. All software and drivers are stored in its flash memory. No messing with CDs, etc. Also, the long cord serves as an antenna.

juha

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#46102 14-Sep-2006 08:32

And doesn't Bluetooth have performance limitations as well?

Hmm, why does the Vodem have two USB connectors?

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BrentR

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#46106 14-Sep-2006 08:43

juha: And doesn't Bluetooth have performance limitations as well?

Yeah, BT 2.0 only has a top throughput speed of 3MBps, and thats only if your device supports enhanced data rate also. All well and good for the current network speeds but going forward, too slow.

chiefie

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#46107 14-Sep-2006 08:46

it could be one used for data connection and power, and while other one to supply supplement power from a separate USB port. You see this on some portable harddrive that uses two USB to get enough power.

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freitasm

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#46108 14-Sep-2006 08:49

Correct, but that's only if the power supplied by the USB port is not optimal. All vodem I've seen connected so far used just one of the plugs.