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saeran

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#154652 3-Nov-2014 16:46
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2degrees say they'll be locking phones now, they have been 'forced' to by their competitors.  Not a fan of the practice, but I guess the 'everyday consumer' probably doesn't care.

http://www.stuff.co.nz/business/industries/10694243/2degrees-forced-to-lock-phones


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jeffnz
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  #1167788 3-Nov-2014 16:51
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Don't see it as an issue at all, if you get a subsidized phone why wouldn't it be locked. Alternative is to pay full retail for phone and go where you like, or just pay the $30




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MikeB4
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  #1167792 3-Nov-2014 16:56
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As long as the purchaser knows upfront that it's locked etc and are making an informed choice I see no issue.

kiwitrc
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  #1167793 3-Nov-2014 17:01
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Its not compulsory, you can get a phone elsewhere.



RunningMan
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  #1167799 3-Nov-2014 17:05
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I also don't like the concept, however can certainly understand the business reasons for it. If you are going to subsidise a phone, then it's reasonable to expect a return on investment over the next months.

Unlocking for free after 9 months seems quite reasonable in comparison to some overseas operators - last time I checked some of the major overseas ones either wouldn't unlock (at all), or charged a significant fee even for an elderly phone.

saeran

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  #1167803 3-Nov-2014 17:08
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Unlocking for free after 9 months seems quite reasonable in comparison to some overseas operators - last time I checked some of the major overseas ones either wouldn't unlock (at all), or charged a significant fee even for an elderly phone.


Yeah the free unlock after 9 months does make it somewhat better – but it's still not ideal.

2degreesCare
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  #1167834 3-Nov-2014 18:04
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KiwiNZ: As long as the purchaser knows upfront that it's locked etc and are making an informed choice I see no issue.


Phones that are locked, see below, will be clearly marked as 'locked' in our retail and online stores. 

 

  • Samsung Galaxy V
  • Huawei Y320
  • Huawei Y520
  • Alcatel 2052
Over the last couple of years, handset locking has unfortunately become an increasingly common practice by our competitors, with one sub-brand now locking all of its 3G Android handsets.  This means we have been left with no choice but to start locking some of our own handset range given a locked handset can be, in some cases, much cheaper than our unlocked equivalent.

This is a step 2degrees doesn't want to take, we fought hard against handset locking in 2008 and in 2011, in both cases asking the Commerce Commission to act.

It will be free to unlock a handset as long as it is at least nine months after you purchased it (you'll be able to check the exact date by texting 'check' to 299) and cost $30 to unlock a phone that that was purchased less than nine months ago.  If you’re Prepay this will come from your Top Up credit.  If you’re Pay Monthly this will be charged to your next bill.

Regards
^POB

NikT
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  #1167916 3-Nov-2014 19:06
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I'm almost in favour of SIM locking because it avoids all of the problems that some folk face when expecting a handset, particularly a low cost one, to work perfectly on another network it was not set up for. The way this has been approached in NZ to date is transparent and simple. $30.00 fee, or wait nine months - a great precedent for Skinny to have set for the market, IMO. This is a far cry from the business practices in other countries, particularly in the US, where it can be incredibly difficult or even impossible to get a handset unlocked. Codes need to be requested from mysterious teams, can take months to arrive, and require an active postpaid account in good standing - if you're lucky.

Here, it's the same approach from all three networks, and has resulted in some extremely competitive pricing for entry-level devices. I've purchased phones for family for under $10.00, and that just wouldn't be possible if the return on investment wasn't guaranteed. Those who see this as a slippery slope should take a close look at the way this is implemented in other markets. I don't see that happening here.




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NonprayingMantis
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  #1167955 3-Nov-2014 19:44
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As long as the subsidy on the phone that justifies the sim-lock is genuine (i.e. the phone is sold for no profit, or even at a loss) , then I think it's absolutely fine, and in actual fact I'd go further and say that sim-locking done this way is a very good thing since it allows people who otherwise would not buy a phone the ability to get one.  
Anything that makes mobile phones more accessible to poor people is a very good thing.  

As for whether the subsidies are genuine in this case, it seems like 2Degrees position proves that VF/Spark/Skinny absolutely ARE subsidising the phones which is what has forced them to respond.  (if the subsidy was 'fake' then 2D could match the pricing without requiring the locking.)

richms
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  #1167962 3-Nov-2014 20:02
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I just find it funny how 2 degrees have become exactly what their first lots of advertising said they were not.




Richard rich.ms

NonprayingMantis
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  #1167980 3-Nov-2014 20:37
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richms: I just find it funny how 2 degrees have become exactly what their first lots of advertising said they were not.

They've been doing that for ages - contracts, complex plans, on-net benefits.  

All things they said they wouldn't do.  All things they have done.

sbiddle
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  #1168003 3-Nov-2014 20:56
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I don't see the big deal or why so many people are making such a big fuss. You buy something that subsidised and if you're not happy you can pay the $30 fee and get it unlocked - it's as simple as that.



alasta
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  #1168023 3-Nov-2014 21:18
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I take it we can assume that anything bought at full retail price will not be locked?

khull
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  #1168026 3-Nov-2014 21:25
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alasta: I take it we can assume that anything bought at full retail price will not be locked?


for now - we are one step away from that. I have bought handsets outright from OZ that are locked to a network and require an extra day processing to get it unlocked from the carrier.


In my view we are going backwards. It may sound harsh to do away with subsidies but I think selling subsidised phones w contract (if it heads down that slippery path) to a target market with already constrained disposable incomes is not the right idea either



ojo

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  #1168033 3-Nov-2014 21:55
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Funny how they can be "forced" into locking phones, but not into matching their competitors' deals.

old3eyes
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  #1168214 4-Nov-2014 09:03
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I don't support 2Ds argument that Spark and Vodafone are doing it then we should as well.   I don't really have an problem with  this as it only effect the low end phones and the people who buy these   most likely  only use them on casual prepay as well..  I would hate to see this eventually creep up the  model numbers so that we end up like the US or AU  where they are all locked..




Regards,

Old3eyes


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