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Topic # 64543 19-Jul-2010 00:01
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Last Friday I met with Orcon CEO Scott Bartlett, and was informed about this news. I had to hold it, but now is the time...

Orcon has just entered the mobile market:, and here's the press release with more information:

Call ‘020’ for Orcon mobile

Award winning telecommunications company Orcon is entering the mobile market – and promising to shake up the space with simple, no catch plans, and its commitment to no fixed term contracts that has won it plaudits in the broadband space.

Orcon is introducing a range of four simple mobile plans at rates from $0.39 per minute and a text rate of $0.20, and customers can bring their existing mobile number or get a brand new 020 Orcon number

It is also offering customers discounts on a range of HTC and Nokia phones – or an account credit if customers use their own handset.

And to keep it local, call centre services are being provided by Orcon in New Zealand.

CEO Scott Bartlett says the launch in to the mobile market is a natural progression for the company.

“Orcon has a deserved reputation for shaking up what is a pretty tired and conservative telecoms market here in New Zealand – we did that with LLU (local loop unbundling) and also with nofixed term contracts broadband.

“Right now all other players in the on-account mobile market lock-in their customers to monthly or longer contracts – Orcon’s having none of that. We’re extending our broadband philosophy by doing away with mobile fixed term contracts altogether,” Bartlett says.

“We are a world-class and award-winning telecommunications company and our customers know we already provide great broadband,” Bartlett says. “So why not mobile and why not make it as simple as you can?”

Living up to its reputation for unpretentious, functional and innovative services, Orcon’s plans are no-nonsense, transparent and world-class its CEO says. What’s more, Orcon customers Orcon mobile, landlines and broadband will only have to deal with one bill.

Bartlett says Orcon mobile will launch with four devices; Nokia 5030 ($60), Nokia 2730 ($199), Nokia E71 ($699) and exclusive to Orcon HTC HD Mini ($699). He says more will be announced throughout the year.

A basic Purple Mobile plan has no monthly fee and a flat rate $0.69 per minute. Sixty- (Silver), 120- (Gold) and 180-minute (Platinum) plans are available at $29.95, $49.95 and $69.95 per month respectively.

All have a basic text rate of 20 cents but there are a couple of add-on text bundles at $11.95 for 500 to any network or $9.95 for 2,000 to the Orcon, Vodafone and all other mobile operators that use the Vodafone network except 2degrees.  Minute-and-second billing applies to all plans while voicemail costs 20 cents

Mobile data costs on phones will either cost a casual rate of a ‘dollar a day’ for 10MB  or people can buy a 1GB add on for $49.95 a month.

Bartlett says Orcon’s Purple Mobile operates the same as a pre pay mobile plan, with customers only paying per minute or per text. The advantage here is that they are only billed at the end of the month.

Subsidies on handsets kick in on the Silver Mobile 60 plan where Orcon contributes $60 for existing, new and mobile-only customers. The discount is $120 for the Gold Mobile 120 plan and $200 for the Platinum Mobile plan..  There is no handset subsidy for Orcon Purple.

Existing and new customers who have their own handset get equivalent amounts credited to their first Orcon account.

Mobile broadband plans range from $29.95 per month for 500MB through $49.95 for 2GB to $69.95 for 4GB with an additional data fee of 50 cents per MB. Customers can either buy a USB mobile modem for $199 or rent one for $5 a month.   All figures are inclusive of GST.

Orders are being taken on 0800 JOIN US (564587) or online at orcon.net.nz.

The company’s mobile network is being provided by Vodafone.


Links: Orcon mobile plans and Orcon mobile handsets.




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  Reply # 353167 19-Jul-2010 00:06
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That's great! The more competition the better it will be for us consumers and business-owners.

It's a shame the data plans aren't as exciting as one would've hoped for. I guess their margins are slim when they are using Vodafone's network.

I look forward to a better customer service experience from Orcon vs the giants such as Vodafone and Telecom:)

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  Reply # 353171 19-Jul-2010 00:14
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Had me till the provided by vodafone part...




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  Reply # 353181 19-Jul-2010 00:25
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yeah exactly.. i was expecting a "we have our own network we have invested XXX millions dollars in building.. thats next gen (4G/3G).. first ever in New Zealand and far more superior.."

One can dream




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  Reply # 353184 19-Jul-2010 00:29
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NZCoderGuy: yeah exactly.. i was expecting a "we have our own network we have invested XXX millions dollars in building.. thats next gen (4G/3G).. first ever in New Zealand and far more superior.."

One can dream


It would have cost a lot more than Orcon can pay for it and it allow quick start in the market. I see it as a much smarter move than other MVNOs around. At least Orcon will be able to provide single billing, single point of contact for support to start with.

If they were working on a new network we would've heard a lot more during the previous months. Just look at how long it took for Econet NZ Communications 2degrees Mobile to launch...





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  Reply # 353187 19-Jul-2010 00:35
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NZCoderGuy: yeah exactly.. i was expecting a "we have our own network we have invested XXX millions dollars in building.. thats next gen (4G/3G).. first ever in New Zealand and far more superior.."

One can dream


Of they could have just used the network that gives 3g inside shops in aucklands largest city.




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  Reply # 353198 19-Jul-2010 01:39
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richms:
NZCoderGuy: yeah exactly.. i was expecting a "we have our own network we have invested XXX millions dollars in building.. thats next gen (4G/3G).. first ever in New Zealand and far more superior.."

One can dream


Of they could have just used the network that gives 3g inside shops in aucklands largest city.


Same problems in major cities across Australia on Vodafone at least.  

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  Reply # 353211 19-Jul-2010 08:04
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Hmmm. 5 years in the making. Wonder if they will be selling 3G data sticks?? I was hoping that they may have been a MVNO on XT..




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  Reply # 353213 19-Jul-2010 08:08
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It sounds like I can sign up for, say, the Platinum plan, get my $200 account credit,  and then leave three months later having paid only $10 total for 3 months of service.
Or will they seek to recover the account credit if I leave? If so, isn't that a contract break fee by another name?

ETA: found on their website:

oh and

they say they are not doing monthly contracts yet from their website:

"if you decide you would like to go we just need 30 days notice."


How is that not a monthly contract?


not only that but for the subsidy

"note that your subsidy is biled back to you if you downgrade or leave within 3 months of connection"


Ok, so it's not a 12 or 24 month contract like the other players on postpaid,  but how can they claim that is any different in substance from a contract break fee?



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  Reply # 353231 19-Jul-2010 09:04
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old3eyes: Wonder if they will be selling 3G data sticks??


Did you read the entire press release? You missed the paragraph "Mobile broadband plans range from $29.95 per month for 500MB through $49.95 for 2GB to $69.95 for 4GB with an additional data fee of 50 cents per MB. Customers can either buy a USB mobile modem for $199 or rent one for $5 a month.   All figures are inclusive of GST. "










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  Reply # 353232 19-Jul-2010 09:08
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NonprayingMantis: Ok, so it's not a 12 or 24 month contract like the other players on postpaid,  but how can they claim that is any different in substance from a contract break fee?


Seriously this question sounds almost like someone from the competition complaining about new practices in the industry.

How would they not recover the subsidy? Or do you think telcos are in the business of giving money for nothing?







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  Reply # 353260 19-Jul-2010 10:13
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All MVNO's are doomed from the start, at least their expectations are low from the beginning. Fair do's to Orcon adding another choice into an already saturated MVNO market where Vodafone dictates the cost and you can't do anything with it because you don't own the infrastructure.

When you see these companies setup as an MVNO, you can't help but sigh and wonder what is the point. (aren't Black & White doing well.......NOT) 50,000 customers woo hoo. I'll get my clacker out, give it a twirl and put it back in my draw. No mobile business is sustainable on 50,000 customers, Telstra only have about 30,000 and they actually advertise. Now they are giving away a free phones if you sign up to broadband and line rental.

Being owned by Kordia might help though, along with staff numbers from both Kordia and Orcon there's 300 customers, and don't forget their family they force to use the service also, another 300.

You can see the massive differences between 2Degrees and MVNO's, they own their infrastructure they make the rules, they can play around with their cost base and add heaps of extra value in free txts, data bundles, txt packs etc. When Vodafone hands you the rule book that’s it, no amazing deals, no imaginative marketing, really what’s the point.


To all MVNO's, leave mobile networks to those companies that own the infrastructure and do what you do best, just be a good little ISP and forget about being a mobile player.





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  Reply # 353268 19-Jul-2010 10:40
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Pretty underwhelming pricing, the whole thing gets a 'meh' from me.




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  Reply # 353291 19-Jul-2010 11:20
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corksta: Pretty underwhelming pricing, the whole thing gets a 'meh' from me.


Ditto.

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  Reply # 353320 19-Jul-2010 11:57
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corksta: Pretty underwhelming pricing, the whole thing gets a 'meh' from me.


+1  the data pricing has a huge gap between casual and 1Gb ??

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  Reply # 353325 19-Jul-2010 12:08
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+1 Meh.
They're just a MVNO, so they can't be cheaper than vodafone. ALl they can do is offer different price points/plans, that aren't really better than VF.


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