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2degrees announces launch date

Our third mobile operator says it will launch on Wednesday August 5. Watch for a reversal of retail strategy.

True to form, the company won’t release any plan and handset details at this point, but plans a big reveal on August 4.

With no movement on the vexed issue of mobile termination rates (what carriers charge each other - or, in 2degrees' ideal world, don't - when calls cross between each other's networks) it's unlikely there will be any killer contract deals.

Instead most industry observers expect 2degrees to focus heavily on the prepay market.

The company will launch without its own retails stores, instead partnering service stations, supermarkets and other outlets.

However, incoming chief executive Eric Hertz - who comes on board just on time for the launch - has already told to NBR that he sees a more sophisticated, higher penetration market ahead, and that reaching such power users will require an areana where people can sit and sign contracts; that is, for 2degrees to open its own retail outlets.

But not immediately. “This is a marathon, not a sprint,” said Mr Hertz.

50,000 trial customers
2degrees says that its designated maximum of 50,000 people have now signed up online for its "Chinwag" promotion, which sees triallists sent a sim card loaded with $5 credit. People who've signed up for the promotion will receive their 2degrees sim cards incrementally from August 4.

A more crowded market - and not just 2degrees
2degrees's W-CDMA 3G network (which runs on the same  900MHz frequency as Vodafone's) will go head-to-head with Telecom XT and Vodafone 3G, but also with a growing army of mobile virtual network operators.

On August 1, CallPlus will announce two rebadged Vodafone services: CallPlus Mobile and Slingshot Mobile. Both will go live on August 15, heralded by TV advertising, and an offer of a free handset for Telecom customers who defect.

Orcon - which like CallPlus has 150,000 customers - has also recently revealed more details of its mobile services plans.

Vodafone launches pre-emptive strike
To guard its flank against 2degrees pre-pay plans, which are expected to have a "recession-buster" focus, Vodafone has just announced a new entry-level on-account plan, which it styles as New Zealand's cheapest (and which it immediately promoted on 2degrees' Facebook page).

Priced from $18.95 a month, Easy (formerly Base) includes 80 minutes of talk time (20 minutes to any national number fixed or mobile, 60 minutes of nights and weekends) plus 40 txts to any mobile in New Zealand and 10 pxts to any New Zealand mobile.

Vodafone is also offering 100MB of bonus data a month for three months for those who sign to an Easy Plan before October 12.

The carrier recently launched a 3GB/1000 pxt free a month deal for iPhone owners, which runs through until the end of September. Telecom responded by offering $600 cash, plus 240MB of data free a month, for anyone who brings their iPhone over to XT.

Suddenly, it feels like there's real competition in the air, and NBR likes it.

More by Chris Keall

Comments and questions
5

Given Apple's about to lock iPhones so they can't be tethered to non-authorised networks, when will Telecom offer it in the market? Or has their little marketing campaign blotted its copybook?

Awesome... my vodafone contract is up in Sept. By by Vodafone!!!

Expect some amazing deals to come forward from Vodafone in the coming months, it will make joining 2Degrees look unfeasible, they'll be protecting their patch and giving the new boy as tough a time as legally able. 2Degrees targeting a percentage of the Prepay market is small change.

Chris Keall do you do any research before you write articles? 2° have a GSM network in the 900/1800MHz band with W-CDMA in the 2100MHz band. They are not even going to have 3G fully rolled out before launch. Please get your fact's correct. And you guys want to charge us for articles on this site... get real mate.

Lets talk about competition, lets talk about why 2 degrees has really been set up - rhetoric about more competition and PR blah blah blah aside, 2Degrees are being set up by trilogy (who now have a controlling interest) to be fattened up with subscribers and then flogged off to some anonymous multinational who wont give a rats ar$e about competition etc...

A lot of the MVNO's being set up may sound like more competition but the reality is based on overseas trends is that most are destined to fail.

Lets face it, in a country with more sheep than people and a staggering inability to add any real value to its economy beyond exporting dead sheep and trees, there really is only ever going to be a very finite amount of competition.

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