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Two Degrees to launch without own retail stores

Two Degrees will launch in August as our third mobile operator without any of its own stores. Instead it will sell its cellphones, plans and SIM cards through partners including petrol stations and supermarkets will let it leverage off “prepay customer behaviour created by Telecom and Vodafone”.

Certainly, there won't be many condusive environments for sitting down and signing a contract.

Two Degrees’ chief sales and marketing officer told NBR that there is no change to the telco’s retail plan, which in June it described as a mix of its own stores, and retail partners.

“There’s no change. It’s just that the stores are not in our launch profile from day one. But they are in our roadmap," said 2degrees head of marketing Larrie Moore.

Two Degrees will have a blitz of 2700 retail outlets selling its SIM cards and handsets, drawn from the following chains: Noel Leeming, Bond & Bond, Dick Smith Electronics, Warehouse Stationery, Pak & Save, New World, Foodtown, Countdown, Woolworths, Shell, Mobil, BP and other independently owned petrol stations served by Red Circle, along with Gilmours, Toops and Trents.

Battle for Auckland
Nationwide, Telecom owns 28 retail stores directly, and has 86 partner stores through Orb and Leading Edge, five kiosks in high traffic malls and hundreds of retailers through multi-channel device sales in the like of Dick Smith Electronics, Bond and Bond, Powerhouse, Smith City, The Warehouse, Harvey Norman, Power Store and Noel Leeming.

Vodafone owns a number of flagship stores, but most, although red-badged are operated by partners DigiMobile and First Mobile (130 stores all up) - as well as multichannel retailers such as Bond & Bond and The Warehouse and others.

Analysts have long credited Vodafone’s larger retail presence as the reason behind its big lead in the Auckland market. Telecom’s new head of retail, Alan Gourdie, has opening acknowledged this fact, and has made opening new stores, getting more presence in malls, and sprucing up existing stores central to XT’s launch. Mr Gourdie has even gone as far as analysing customer behaviour recorded on camera at a Telecom outlet in Albany, which tracked customer behaviour to help with remodelling.

"To support the launch of our XT, we have rolled out a new design and fit-out for retail stores that includes a slick new layout, interactive displays and wireless hotspots. Six stores were open with the new design for launch day with 12 further stores to being refitted over the coming months," says sponsorship and mobile PR manger Rebecca Earl.

Where Telecom & Vodafone customers work, live .. and shop
Two Degrees’ Mr Moore is taking a more guerrilla approach.

“Where do Telecom and Vodafone customers go to top up?,” he asks “Groceries, and petrol stations and electrical outlets. We’ll be able to leverage off their marketing.”

He denies that a presence centred around supermarkets and other meat-and-potatoes retail outlets implies that the telco will target the low end of the market.

“You and I are both heavy mobile users,” he told NBR. “And we both go to the supermarket.”

Mr Moore said once Two Degrees’ does open its own stores, they will be relatively few in number.

“We will have stores but not to the same extraordinary excess as Vodafone and Telecom,” said Mr Moore, before dropping in one of Two Degrees’ trademark conspiracy theories:

“One Vodafone or Telecom store on every corner of every high street excessive. I want to know who’s paying for those stores. That’s the question consumers should be asking.”

Two Degrees has yet to announce its exact launch date, or its line up of handsets and plans.

More by Chris Keall

Comments and questions
25

I'll have a packet of crisps, 20 rothmans and a telephone please, Ahmed.

can't wait.

lets see a tiny network foot print followed by roaming on a shonky barely working vodafone network - 2 Degrees will work riiiiight.....

Put on your glasses, more 2 degrees cellsites in the Wgton region than Vfone has. They also have excellent coverage in Auckland and Christchurch.

2degrees creating a benchmark for New Zealand ... YEAH RIGHT!!!

After what we discovered this week from the Commerce Commission; shame on you Vodafone!
Bring on 2degrees!

Are their cell sites high enough or was this just a malicious rumour.

Alan how do you know they have excellent coverage in Auckland they havn't launched yet?

Optus customers (and other visitors) are already roaming in NZ on 2degrees. Set your cellphone to scan for networks and you'll see the signal.

Yeah, it's OK... Allan's tested it and apparently it puts the soup back in superior.

I'll be amazed if they've got enough money to switch on the power. Ridiculous.

No wonder Vodafone are trying everything to protect this massive gouging

i spoke to a mate who is a cellsite engineer
they have 410 cell sites installed so far

only issue is the MTF (mobile termination fee)

if thats not bought down by at least 50% then 2degrees will struggle & will probably go under

then someone like TelstraClear (who have been trying 4 years) will probably jump in and buy them out cheap

Have 1 degree put Tex out too pasture yet or is he still riding around shooting himself in the foot. We havn't heard from him for awhile. Yeehaa

Your 89 cents per minute call charges are outragous, and the stats speak for themselves: 27 in the OECD - there are only 3 other countrie more expensive than NZ!
So stop telling us we have it so good here, Big Brother.

OK, so Telecom charges some of the highest mobile call charges in the world - but isn't that what the market dictates? What do you want? Socialist intervention?

We apologise, we got it wrong. Check out our apology on last night's 6pm news

B/S unless you mean total turnover not net profit. How much did telecom shift to its overseas investors?

Vodafone sent nowhere near $800m back to the UK. They sent far less back to the UK as a one-off payment covering five years' worth. You're misinformed and stupid to boot. Also, your mother dresses you funny.

As for calling charges, the Commerce Commission says NZ is in the cheap half of the OECD and unlike you I can prove it: http://www.comcom.govt.nz//IndustryRegulation/Telecommunications/MonitoringandReporting/ContentFiles/Documents/2008%20report_2.pdf

Page 17 has the info you're after. Get someone to read it out loud to you. Slowly.

Ohhhhh, Vodafone - you're in denial I see. The above misinformation will catch up on you: it's very revealing there is no name to the previous comment.

Let's see Paul Brislen come onto this forum and put his name to the above assertions.

Hi anonymous from Vodafone at 8.47:
Thanks for the link to the Commerce Commission April report; check out that reference on page 16, point 40, which hints at how dodgy those base plans are...apparently the Commission "had been concerned that the plans still were not being promoted in Vodafone stores."

Now that's very interesting, why would Vodafone come up with base plans for the Commission, yet not promote them? It's only recently that Vodafone placed the base plans in any brochures.....

I agree. I always thought Vodafone was a bit too aggressive with the Commission on the base plans: Vodafone was never able to produce any brochure that showed the plans, and of course their call centre never promoted them either....You've got to wonder, was it simply a cynical move to influence the data?
Vodafone has never declared what proportion of their customer base is really on the base plans.....and there is a reason why....it's bugger all!

But right at the back.......And not very prominently either

8 years to build

Still trying to engagae the ComCom

Burnt through how much cash??

How many new investors have leveraged in becuase more cash was needed

How has their business case changed....from 8 years ago ? I wonder..if its still viable..

Whats the risk analysis say on factor sensitivity?

Lets wait and see but why wouldnt Kordia buy up all their sites for an SOE like KiwiBank?? when they fail...

What is their startegic approach to this market - more of the same with no point of difference

Or will they addvalue at Mcdonaldsm - I get a free Konka with you fries....

August will give us the indication for failure or success biut based on what we know and the people imnvolved what do we expect??

The best they can do is the Ministry of Propaganda approach as above.
Note how no one from Vodafone has turned up to deny the 'base plan' smoke and mirrors strategy....

I've got a brochure which shows the Vodafone base plans, and yes, it is at the back, and not very big; but they are there

I think you'll struggle. They were invented a few years ago, but never seriously promoted, to force the Commission to stop showing how expensive it really is for most NZ mobile phone users

Who wrote this dribble?

Bit that made me laugh:
Telecom’s new head of retail, Alan Gourdie, has opening acknowledged this fact, and...

has opening?
Surely you meant 'openly'?

Cant wait to burn Telecom, its such a fat deaf bastard! Worst customer service systems in the southern hemisphere.

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