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  # 232682 8-Jul-2009 18:53
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jjnz1: I agree with TomS, i think "the more people who sign up, the more you will save" refers to the more people on 2Degrees, the more "onnet" calls you will make.

I think 2D's onnet calls will be almost free.

If all your friends sign up, then you could call them anytime of the day for little price.


I've been thinking about this as well, and I remember Telecom/Vodafone was trying to stop them issuing local are code numbers (e.g. 09, 04 etc) for their mobiles and then having roaming within huge zones unlike the LocalZone Vodafone offers.

If they had to back down on this, I can imagine the free SIM/$5 credit will be credit to say 022 numbers only with what 3-5c/minute calling - enough for a long time.

They have a marketing budget, and a issue of quickly ramping up customers, or trying to get customers on-net - why not make on-net nearly free and carpet bomb SIM cards.

If I could call all my friends for nearly free on their mobiles, if I used a 022 SIM which was free itself, it's only lazyness stopping me...

Interesting times...




Tyler - Parnell Geek - iPhone 3G - Lenovo X301 - Kaseya - Great Western Steak House, these are some of my favourite things.

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  # 232693 8-Jul-2009 19:13
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exportgoldman:

If they had to back down on this, I can imagine the free SIM/$5 credit will be credit to say 022 numbers only with what 3-5c/minute calling - enough for a long time.

They have a marketing budget, and a issue of quickly ramping up customers, or trying to get customers on-net - why not make on-net nearly free and carpet bomb SIM cards.


Interesting times...


Doesn't their cost depend to some degree as to how many 022 SIMs will be accessing VF cellsites because they are outside 2degrees site coverage - I would imagine that such calls would have a significant cost to 2degrees depending upon the pricing of their agreement with VF and thus at least in the early stages (or at least until 2degrees have a large part of the country covered) having calls as cheap as you suggest would be quite a significant risk to them in terms of profitability.

 
 
 
 


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  # 232707 8-Jul-2009 19:46
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The new ad they have posted on facebook is great.....oh geoff!!!!

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  # 232716 8-Jul-2009 19:54
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drajk:Doesn't their cost depend to some degree as to how many 022 SIMs will be accessing VF cellsites because they are outside 2degrees site coverage - I would imagine that such calls would have a significant cost to 2degrees depending upon the pricing of their agreement with VF and thus at least in the early stages (or at least until 2degrees have a large part of the country covered) having calls as cheap as you suggest would be quite a significant risk to them in terms of profitability.


Yeah they would have a big cost if people are making calls from Vodafone's sites, but I imagine 2D will ramp up the buildout to those area's fairly quicky which have high roaming. It's all about cost, if they are paying VF say $300/month for roaming onto a particular cellsite it may not be worth doing a buildout, but if it's costing them $3000/month then guys in vans with radio gear will be turning up quicksmart to put a new 2D site up.





Tyler - Parnell Geek - iPhone 3G - Lenovo X301 - Kaseya - Great Western Steak House, these are some of my favourite things.

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  # 232832 8-Jul-2009 22:48
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drajk:
exportgoldman:

If they had to back down on this, I can imagine the free SIM/$5 credit will be credit to say 022 numbers only with what 3-5c/minute calling - enough for a long time.

They have a marketing budget, and a issue of quickly ramping up customers, or trying to get customers on-net - why not make on-net nearly free and carpet bomb SIM cards.


Interesting times...


Doesn't their cost depend to some degree as to how many 022 SIMs will be accessing VF cellsites because they are outside 2degrees site coverage - I would imagine that such calls would have a significant cost to 2degrees depending upon the pricing of their agreement with VF and thus at least in the early stages (or at least until 2degrees have a large part of the country covered) having calls as cheap as you suggest would be quite a significant risk to them in terms of profitability.


I beleive they have regions 1 and 2 covered with their own cellsites, which is (IIRC) around 85% of the population, so I doubt that cost would be too bad.

the greater cost will be the cost of providng the SIM and connecting the customer.  whilst SIMs themselves are very cheap to manufacture at scale, there is a cost of connecting the customer.  If a significant portion of the free sims they give out onlyuse the $5 credit and then bugger off back to Telecom or voda, then they will have wasted a lot of money.
Still, I think it is a pretty good and relatively cheap way of building scale quickly.

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  # 232875 9-Jul-2009 09:12
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n4: New ad...

http://www.facebook.com/video/video.php?v=108396286535




that ad is great - very funny. I'm loving these 2D adds. Laughing




kind regards Andrew TD




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  # 232887 9-Jul-2009 09:45
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Hey Geekzoners,

Plenty of discussion around price! You all know that the gorilla on our back is mobile termination rates (MTRs).

Not only do they prevent new competition coming into the market - enticingly low on-net rates and well above cost cross-net rates prevent people from moving out of their calling community (who wants to pay 20 cents to text someone on another network... err.... expensive!) and until we have a community we will always be a net out payer to the incumbents. But they also put an artifical floor as to how low prices can go, as your provider will always need to factor in the MTR fee that needs to be passed over to other networks into the price they charge you.

We've spent over $250million in building out our network (yes - its awesome in Auckland, Wellington and Christchurch and we have a roaming agreement with Vodafone for when our customers are outside our coverage areas) and we certainly believe we have done our best to bring value to our customers in respect to the gorilla we carry around with us.

But just imagine if the recommendation from the Commerce Commission that MTRs in NZ should be 7 cents for a voice and under 1 cent for a text.... (we think it should be net-zero but hey, that's possibly another blog post) if this was to happen then prices in NZ would fall through the floor.

Cheers!
2degrees





 
 
 
 


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  # 232888 9-Jul-2009 09:47
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2degrees: Hey Geekzoners,

Plenty of discussion around price! You all know that the gorilla on our back is mobile termination rates (MTRs).
Not only do they prevent new competition coming into the market - enticingly low on-net rates and well above cost cross-net rates prevent people from moving out of their calling community (who wants to pay 20 cents to text someone on another network... err.... expensive!) and until we have a community we will always be a net out payer to the incumbents. But they also put an artifical floor as to how low prices can go, as your provider will always need to factor in the MTR fee that needs to be passed over to other networks into the price they charge you.
We've spent over $250million in building out our network (yes - its awesome in Auckland, Wellington and Christchurch and we have a roaming agreement with Vodafone for when our customers are outside our coverage areas) and we certainly believe we have done our best to bring value to our customers in respect to the gorilla we carry around with us.
But just imagine if the recommendation from the Commerce Commission that MTRs in NZ should be 7 cents for a voice and under 1 cent for a text.... (we think it should be net-zero but hey, that's possibly another blog post) if this was to happen then prices in NZ would fall through the floor.

Cheers!
2degrees



Right, wheres the petition? :P

Commerce Commission should rule for more competition, and thats one of the ways to do it!





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  # 232890 9-Jul-2009 09:52
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2degrees: Hey Geekzoners,

Plenty of discussion around price! You all know that the gorilla on our back is mobile termination rates (MTRs).
Not only do they prevent new competition coming into the market - enticingly low on-net rates and well above cost cross-net rates prevent people from moving out of their calling community (who wants to pay 20 cents to text someone on another network... err.... expensive!) and until we have a community we will always be a net out payer to the incumbents. But they also put an artifical floor as to how low prices can go, as your provider will always need to factor in the MTR fee that needs to be passed over to other networks into the price they charge you.
We've spent over $250million in building out our network (yes - its awesome in Auckland, Wellington and Christchurch and we have a roaming agreement with Vodafone for when our customers are outside our coverage areas) and we certainly believe we have done our best to bring value to our customers in respect to the gorilla we carry around with us.
But just imagine if the recommendation from the Commerce Commission that MTRs in NZ should be 7 cents for a voice and under 1 cent for a text.... (we think it should be net-zero but hey, that's possibly another blog post) if this was to happen then prices in NZ would fall through the floor.

Cheers!
2degrees



So if Im in dunedin or invercargill will we be having to pay extra for the use of roaming through vodafones site or will you cover that?

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  # 232892 9-Jul-2009 09:57
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ZALMAN:So if Im in dunedin or invercargill will we be having to pay extra for the use of roaming through vodafones site or will you cover that?


2D will cover that, you will have a fixed price per minute regardless if you are on 2D's network, or roam onto Vodafone's. Mobile companies usually do this otherwise it's a nightmare for customer service because people have trouble understanding it and it's hard to tell when you will roam, for instance in my old house my bedroom picked up three different cell sites, all potentially with different prices per minute if they charged a different price for roaming/non-roaming.

2D will quickly build out their network to where they find people are roaming over to Vodafone to save themselves money.




Tyler - Parnell Geek - iPhone 3G - Lenovo X301 - Kaseya - Great Western Steak House, these are some of my favourite things.

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  # 232895 9-Jul-2009 09:59
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2degrees: Hey Geekzoners,

Not only do they prevent new competition coming into the market


Speaking about coming into the market, when in August will you be launching? I dream of it being the 1st, but I imagine it will be the 31st....




Tyler - Parnell Geek - iPhone 3G - Lenovo X301 - Kaseya - Great Western Steak House, these are some of my favourite things.

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  # 232904 9-Jul-2009 10:11
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I'm pretty sure i read somewhere it was the 8th of august

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  # 232905 9-Jul-2009 10:13
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Not only do they prevent new competition coming into the market - enticingly low on-net rates and well above cost cross-net rates prevent people from moving out of their calling community (who wants to pay 20 cents to text someone on another network... err.... expensive!) and until we have a community we will always be a net out payer to the incumbents. But they also put an artifical floor as to how low prices can go, as your provider will always need to factor in the MTR fee that needs to be passed over to other networks into the price they charge you.





Does that mean that XT’s policy of same price for on and off-net voice and text on all plans is approved by you?  If so, will you be offering similar pricing methods i.e. same rate for on and off net voice and text?


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  # 232911 9-Jul-2009 10:30
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freitasm:
Hayden: I'm pretty sure i read somewhere it was the 8th of august


This is the Geekzone Pizza evening AUCKLAND. But 2degrees is not a sponsor, so it shouldn't be their launch ;)



Unless they want to make a VERY good impression with Geekzoners and start giving away unlimited data/unlimited calling plans with free iPhones for $60/month. And a boat, a bach, a platinum credit card loaded with...




"Roads? Where we're going, we don't need roads." - Doc Emmet Brown

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