iPhone data: Telecom vs Vodafone vs 2degrees
[Entrepreneur and industry commentator Lance Wiggs blogs at LanceWiggs.com. 2Degrees is not an official iPhone carrier, but its sells micro-SIMs and Apple's handset is compatible with its network. Read NBR's report on Telecom and Vodafone's respective iPhone 4S launches here.
2Degrees best data pricing is only available in Auckland, Wellington, Christchurch and Queenstown (and shortly Hamilton and Tauranga), where the company has its own network - CK]
Looking to actually use your iPhone as intended?
Then you’ll need data, and lots of it, especially if you want to abandon the mobile data sticks and tether your phone to your computer when travelling.
I’ve run the numbers from all three major suppliers, and assumed that you’d buy the best deal, and that you correctly project your demand when you do so.
The charts below ignore the various values of text and voice in the plans, and show the cheapest way to obtain data under each of the three carriers.
For data consumption under 3GB – Telecom is the winner, with Vodafone close at 500MB and then beating out only 2Degrees for 2GB or less.
(Click any chart to enlarge).
But what if you use more than 3GB a month, as I often do?
Telecom is cheapest again (using their 2GB+4GB add-on plan), 2Degrees is next (using its nationwide plan which costs $100 per extra 1GB), while Vodafone is most expensive (using the 500MB plan + 1 GB addon plan.) Vodafone suffers badly as above 1.5GB it has a punitive rate of $200 per 1GB.
Going forward our data use with iCloud sharing photos, Siri, Dropbox, movies and tethering can get pretty large. Mine is tracking to go over 6GB for this month – so let’s see what the damage is:
That’s 15 and 20GB on the right hand side, so don’t panic, and equally don’t expect to use your mobile phone as a replacement for your home data. (My home plan is 150GB a month). But if you are a heavy data user then right now Telecom is the place to be, up until 10GB, which is when their punitive rate (10c/mb) kicks in. Above 10GB you’d be smarter to sign up to another plan and wield two phones or sim cards.
So while Telecom is cheapest now, whatever you do don’t sign up to a contract. Your use will change a lot over the next 2 years, and so will the prices in the market. The rebate you get on a phone is small compared to month after month of restricted service or very high data charges versus competition. A few hundred dollars now might cost you a couple of hundred dollars a month down the track.
So go ahead and get an iPhone, but sign up to a month by month deal, monitor your usage and adjust the plan and supplier regularly.
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Comments and questions34
Lance - thanks for that.
I would point out that in my home and in the office I have secure WIFI access which substantially reduces the data usage (and it's significantly cheaper to use ADSL2+ hardline rather than mobile data plus it's often faster)... if you're a heavy data user and you DON'T use WIFI data where you are often (eg office/home) then you will be tossing money to the telcos that you could keep in your pocket...
I am with 2 Degrees and paying $20 for 1 Gb.
Assuming that you are in a 2degrees mobile braodband zone, the numbers don't look right. 1GB is $20, 3 GB is $50 and 12GB is $150. You can buy another when you run out.
user of financial reports:
Yes I have serious data plans and wifi in place for places were I live and work. The typical wifi routers fail when loaded it with multiple Apple devices, but AirPort Extreme's are superb.
While we still have data caps a home, and they are universally still too low, I will say the vendors have been a lot more proactive. Just today I saw that Vodafone automatically increased at least one person's limit by 15GB.
Anonymous (2): These are national plans only. I accept the concept of regional plans for sticks which you can choose to use or not - but they are useless in practise for phones.
However those are great prices.
This assumes you need or want over 500MB. As a geek I often get asked by non-geek friends how much they need. Given they will never tether I tell them that all the plans have more than enough data. Out of interest I later to check their usage (under iPhone settings) and most use less than 150MB/mth. I haven't found one iPhone user that has used more than 500MB/mth. I'm sure they're out there, but 1GB+ users are pretty thin on the ground!
@Anonymous...
"I'm sure they're out there, but 1GB+ users are pretty thin on the ground!"
I would have to agree with you. I've had an iphone for over 2 years and know lots of other iPhone users. None of us have ever exceeded 500mgs.
But with the introduction of iCloud, I suppose that could change.
vodafone's data rate doesnt seem quite right...if I am correct, once you go over 250MB or 500MB depending on the plan you can keep buying $20 1GB data blocks, which will cost far less than what you have on there which seems like casual rate to me.
so 2GB will be $140 and 3GB will be $160...That seems cheaper than telecom to me!
looking at my iCloud settings it says "Automatically back up your camera roll, accounts, documents, and settings when this iPhone is plugged in, locked, and *connected to WiFi*".. so it seems iCloud backup uses WiFI, not 3G?
Using my iPhone as intended puts more weight on texting and calling than on data, which I only use for occasional directions and email.
Seems that Lance hasn't got his numbers correct here. But the point he makes is clear we are paying a lot more for mobile data than is reasonable !!!!!
Just for a comparison ... I was in the US recently and bought a SIM with T-Mobile. USD $60 Unlimited calling to National US numbers, Unlimited calling to a list of about 20 International countries (inc. NZ & AU) and unlimited data...
@Anonymous (Vodafone's data rate...)
As the previous blog post on my own site states Vodafone allows only one extra data pack - just 1GB to add to the 500MB.
@Arcane - No I do stand behind the numbers. Refer to the post below.
@CraigS - the iPhone is intended to be a small computer - but yes we can use it in whatever way we like. When I send text messages the recipients are often iPhone users as well, and so the message is sent via iMessage instead of the carrier's overpriced txt system.
Overall - if you have the capacity and a consistent high speed network experience where you operate the phone, then your usage will naturally rise. NBR readers may want to consult their children about this. Ask them what they do, what media they consume. It's a different world.
http://lancewiggs.com/2011/11/10/vodafones-iphone-4s-plans-seem-to-have-forgotten-data/
This article is misleading and incorrect. I use the 2degree 3GB plan and only pay $50. I tether my iPhone and it's fantastic for two laptops. Average speed 1.5 - 3Mb. Just beware that sometimes windows 7 Microsoft updates will download some crazy 400 - 800MB security updates... Go 2Degree
It seems lance endorses Telecom rather well. You absolutely ignore 2degrees data packs which would give you the best deal. Sure they are only valid in broadband zones but I'm never out of a broadband zone anyway.
Also important to note that Telecom's data provisioning actually works, unlike a notable other.
My iphone is with telecom. I travel overseas (Asia mostly) regularly and it has failed to work properly through telecoms international roaming. At times they tell me it is a fault with the phone, but friends arrive with me and their vodafone iphones work great straight away.
Recently i called telecom from china on a friends vodafone iphone to say I wasnt connecting and they tried to tell me iphone 4 is not compatible with Chinese networks. News to the phone I was using and the hundreds of thousands of iphone4 users over there. Whenever I arrive in a new location it takes up to 48 hours to connect, if at all. My most annoying on a very busy trip when I needed it most was landing in Xiamen, spending 2 days on business and getting a welcome on my phone as I was at the airport just about to leave!
Even NZ is not perfect. Last week landing in Auckland, as the plane taxied in the pilot said you can use your devices. Turn my phone on and 2degrees and vodafone appeared as carriers straight away. Telecom took over 4 hours before it showed up and I could call my family. Back 6 days now and cellular data still not working with telecom saying I now need another new updated sim (my third one in 4 months!!!!!).
Telecom may have great plans and your recommendation is based on the plan, but you need also to consider what platform the iphone works most reliably on especially if traveling overseas.
PS to answer the question - no I havent a clue why I stick with telecom!
$20 per GB with 2 degrees, in major metropolitan areas - the cheap 'broadband zone'.
Since I'm around Auckland, this works perfectly for me. Outside the BBZ data is still available, just at a casual rate.
if you don't go out of the main cities often, 2degrees is definitely way cheaper than the other providers by quite a long way
e.g. 1GB will cost $20 on 2degrees broadband zones instead of $75 on telecom and around $120 on vodafone (according to the graphs here)
You can buy a 2GB PAYG data block from vodafone for $50 per month
Interesting there is no mention of up and down speeds on each network.
"You can buy a 2GB PAYG data block from vodafone for $50 per month"
Do you have a link for that?
This "article" is rubbish and should be seen for what it is: an advertotial for Telecom.
Anybody with half a brain knows that 2 degrees offers the best data deals.
How much data are you really using data outside Auckland, Wellington, Christchurch, Queenstown, Hamilton, Tauranga... And soon Wanganui, Palmerston North, Whangarei, Napier-Hastings, Taupo, Rotorua, Invercargill, Dunedin...
NBR should stick to using content by actual journalists, not random Telecom fans.
So, if you will be using most of your data in Auckland, Wellington, Christchurch, Queenstown, Hamilton, Tauranga, Wanganui, Palmerston North, Whangarei, Napier-Hastings, Taupo, Rotorua, Invercargill or Dunedin, this "story" is irrelevant so you can ignore this fiction. 2 degrees is clearly the way to go.
For everyone else (all five of you), weigh your options.
Yep, typical WIFI routers do fall over and we've upgraded the office one to handle the multiple Apple devices which has significantly diminished the 3G data bill.
Yes broadband data caps are too low for sure (and I'm still stumped why the telcos don't have some data caching locally in 'free zones') but there are users who use mobile data and pay a premium when they don't have to.
Telecom sufferer I think your issue is that iPhones wipe their APN code when they roam (nationally or internationally), making data connection impossible (but leaving voice and SMS ok). This is because Apple originally wanted iPhones to be locked to one carrier. I get the same problem when I roam nationally away from the 2degrees network with my iPhone. What you have to do (each time you roam) is retype the APN code into your handset. It's usually something simple - Telecom's helpline or website should be able to tell you what their APN is.
Slightly off topic but intersted in your comment re WFFI & multiple devices - we've been having issues with time capsule wifi - is this a known problem?
We'ev got 3 iphones, ipad; 2 macbook pros & apple tv[ and the odd ipod touch etc] and have been having a few issues...
Slightly off topic but intersted in your comment re WFFI & multiple devices - we've been having issues with time capsule wifi - is this a known problem?
We'ev got 3 iphones, ipad; 2 macbook pros & apple tv[ and the odd ipod touch etc] and have been having a few issues...
Telecom you are amazing!
LOL
Calling me a Telecom fanboy is amusing - let's just say that Telecom would not express the same opinion.
2Degrees city packs. They have certainly spread since I last checked. But yes - I do go further afield. Regardless - I'll do another chart with 2Degrees. But then I'm not a journalist so no promises on when.
Time Capsule: I had one of those die on me, but otherwise ok. If you have wifi N and G devices on the older models then any G devices will slow the entire thing down. The newer models cope.
Roamers: Telecom roaming in Mozambique was not even worth crying about.
if you delete your one gig add on after using it all up you can add it again and get another gig for 20 dollars a nice little loop hole i found
2 degrees has one huge problem, it's data is super expensive in holiday destinations. Ok sure it works in a few places like Taupo and Queenstown but uploading all those photos at the top of the mountain is going to cost far more than with telecom or vodafone. Until 2 degress has 3g in places like Ohakune it is useless to me.
Heck I'd only have to do a trip up to Otaki and bam 2d data is useless again. It might be great for those who are only ever in the main centers but for most people you will find yourself out of those zones quite often. Even within Wellington there are a few areas with no 2d 3g.
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