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29 posts


# 47796 12-Nov-2009 15:31

New Zealanders are able to get a prepaid mobile phone plan at prices lower than the OECD average for the first time since the Commerce Commission started analysing the industry.

The commission today published its Telecommunications Market Monitoring Report for the six months to June.

The report also provides some more recent information about mobile prices in New Zealand following the launch of the 2degrees network in August.

New investment continued in mobile networks during the first half of the year, the report said.

Telecom finished rolling out its new 3G XT network, while Vodafone finished extensions to its 3G network, and 2degrees finished the first stage of its new network, rolling out in Auckland, Wellington and Christchurch.

The 2degree prepaid mobile plan was significantly cheaper than the other New Zealand plans and below the OECD average for the three baskets - for low, medium and high user calling - in the survey, the report said.

About 67 per cent of mobile subscribers in this country used prepaid plans, with their use likely to be even more predominant among lower spending users, the report said.

It warned the benchmarking results were indicative only, and did not capture special or confidential deals.

The prepaid benchmarking for August showed Vodafone's prepaid plan as the most expensive in this country for all baskets by a significant margin, with Telecom's XT prepaid plan in between 2degrees and Vodafone, the report said.

Mobile phone connections grew 3 per cent in the year to June, reaching 4.7 million, equating to a penetration rate of 109 per cent of the population.

It was also now possible for consumers to change between mobile phone operators without changing phones, because the new mobile networks built by 2degrees and existing operators had compatible technologies.

The ease of changing networks had been reflected in a rise in the number of people transferring their mobile phone number to a different network, the report said.

The quantity of mobile numbers ported each month had been relatively low at around 1 per cent of total mobile connections per year, and never exceeded 5000 a month from April 2007 to June 2009.

In July 2009 the volume rose to 5400 after the launch of Telecom's new 3G XT network at the end of May this year. Mobile number ports rose to 15,500 in August and 17,300 in September.

It was reported that around 3000 of the mobile number ports in September were Vodafone customers switching to Telecom's new XT network and taking their existing number with them. A similar number were Telecom customers switching to Vodafone, the report said.

That suggested the remaining mobile ports, numbering about 11,000, were Vodafone customers switching to 2degrees and taking their existing numbers with them.



Well done 2degrees Smile

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Ultimate Geek

  # 272488 12-Nov-2009 19:15
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+1 Great going 2 degrees

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Uber Geek

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  # 272497 12-Nov-2009 19:36
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I've seen a few articles on this, some showing that we used to be 26th out of 30 countries. None of them show where we are now. Does anyone have these figures? I appreciate that they don't be accurate until the OECD re-surveys all 30 countries, but it would still give an indication.


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  # 272643 13-Nov-2009 09:43
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Master Geek

2degrees mobile

  # 272719 13-Nov-2009 13:12
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Thanks for the acknowledgements!
The Teligen information (which is who/how and where) the OECD benchmarking information comes from measures countries against "baskets" - so you get a ranking for a 'low user basket', 'medium user basket', and a 'high user basket'.
While not officially validated by Teligen our analysis of our rates against their baskets shows that in the Low User Basket our ranking is 12th least expensive country out of 30, in the Medium User Basket our ranking is 10th least expensive country out of 30, and in the High User Basket our ranking is 16th least expensive out of 30.
This correlates to the Commerce Commission statement where they say: "The entry of 2degrees into the 2G prepaid market has meant for the first time in the Commission?s analysis, New Zealand?s prepay prices are benchmarked at below the OECD average."
So draw your own conclusions as to if our analysis is on the money or not.
Regardless of where New Zealand now sits amongst the OECD, we remain committed to bringing even greater value to our customers.
As part of this we are giving our customers even more value everytime they top up. Pleasant changes afoot for our customers from Monday 16 November at 8am......


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Uber Geek

  # 272730 13-Nov-2009 13:41
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it only gives NZers a benefit if their pattenr of usage is close to the baskets used by the OECD - which it isn't.

2D has a relatively high text messaging price for medium to high users of texts compared to XT and Voda - the effect of this price differential on typical users is not captured in the OECD rankings because they assume a much lower text message usage than NZ actual text message usage.

Also the OECD rankings exclude any special calling plans like Best Mate which save most users a considerable amount.

as acknowledged in the comcom report

The benchmarking does not capture special or confidential deals and the baskets are likely to differ from New Zealand usage patterns. For example, the OECD high user basket includes only 55 texts per month while the average number of texts sent in New Zealand is in the order of three to four times higher than this. The OECD methodology is also unable to benchmark plans with restricted on-net calling offers like Best Mates that provide unlimited calling between one or several specified on-net numbers for a fixed monthly fee.

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