Orcon: our heart belongs to Vodafone. Probably
It’s still unclear when Orcon will launch its mobile phone service - originally promised for “spring”.
But the state-owned ISP told NBR its heart belongs to Vodafone and there’s nothing in a trade publication rumour that it will sell a rebadged version of Telecom’s XT network rather than Vodafone’s 3G network.
“We only have an MVNO [mobile virtual network operator] agreement with Vodafone,” said spokesman Duncan Blair.
Yet Mr Blair stopped short of saying point blank that Orcon would launch with Vodafone. The company would not comment on any commercial negotiations.
Telecom originally said it would bar its MVNO partners from its new XT network until 2011.
But after TelstraClear walked - announcing it would 30,000-odd mobile customers to Vodafone - and 2degrees gained unexpected traction - Telecom announced it would wholesale XT by 2010.
Although there are a number of MVNOs now - all bar one in Vodafone’s camp - there is only one of any market power: CallPlus, which sells a rebadged Vodafone 3G service as CallPlus Mobile and Slingshot Mobile.
CallPlus recently told NBR it had signed around 1000 mobile connections.
Orcon and CallPlus are the country’s forth an fifth largest ISPs respectively. Each has around 150,000 customers - a fertile home ground to upsell to a mobile service.
Mr Blair wouldn’t comment on the reason for Orcon’s delays, or when its mobile service would finally launch. Trials have been underway for the past four months, with around 400 people using an Orcon-badged service.
NBR can't help but wonder if the hold-up is being caused by a last-minute offer from Telecom - which Orcon is either considering, or attempting to use as leverage to get a better deal from Vodafone.
Back to home
Back to top
Print
Latest
NBR SERVICES
SUBSCRIPTIONS
Sign up for NBR subscriber content or email alerts
Comments and questions6
It would be interesting if Orcon moved to Telecom - it would suggest the wholesale market for mobile services is quite competitive. That is, new entrants can choose between two serious providers of services (Vodafone and Telecom) when purchasing wholesale services. This should be an encouraging sign for the market and lead one to question whether government/regulatory intervention is needed in other wholesale mobile markets (such as roaming, mobile termination, co-location etc). The market appears to be becoming more competitive - this is good for NZ.
Just look at the fixed market where margins are so tight nobody competes. Expect that from the mobile market as well.
Now if Orcon could get Telecom to bundle mobile and fixed in some kind of super-deal... that would pull the band-aid off the festering wound of fixed line competition.
Telecom's been out there talking to every MVNO already in the market and those it suspects of wanting to be in the market. By waiting so long it's given Vodafone a huge lead (and the low-hanging fruit) but if it's really determined to catch up it'll have to realise its MVNO partners want to be full-service telcos, not 'Me Too' players.
It's run by a madman who has no idea what it takes to run a telco. Scott's a nice enough guy, if you like that sort of thing, but he doesn't have a clue.
He signed the first MVNO offer with Vodafone and is last cab off the rank. Why? Is it the Orcon billing system we've heard so little about that doesn't do what it's supposed to? Is it that Scott can't manage anything directly and Kordia has to step in to run things on a day-to-day basis?
I'll give him another six months in the role and if he doesn't lift profitability he'll be gone. That's assuming Kordia doesn't just sell the whole mess to someone who cares.
Why would any potential MVNO want to experience the same level of customer service as TelstraClear experienced while a wholesale customer of Telecom? LTE (4G) is coming, has Telecom learned from the XT experience about delaying access to MVNO's? Which company wants to pay to find out?
Orcon had beetter get its current house in order before attempting further acquisitions. The "service" level provided to former Igrin customers is absolutely shocking and make a joke out of the assurances given at the time of this recent acquisition. Former Igrin customers are now migrating away from Orcon.
Why bother with Orcon in the first place? Their service is apalling and their broadband plans barely competitive.
Under an MVNO things are only going to get worse with poor Orcon customers having to go through Orcons broken customer service and then Vodafone's barely comprehensible customer support out of Egypt seems like a complete waste of time - might as well be with Telecom at least their broadband plans are competitive and their customer support is passable