XT pricing revealed: Two Degrees boss says it doesn’t hold a candle to Singapore
Telecom’s XT plans are innovative in some respects, such their single price for on-net and off-net calls. But in pricing, they stay close to Vodafone. Two Degrees' boss says they should be much, much cheaper. So will our third mobile operator go lower? Well, there’s a catch ...
Two Degrees chief executive Mike Reynolds says he’s underwhelmed by Telecom’s XT plans (see tables below) which, in price terms, stick closely to Vodafone; depending on what level of data you consumer, either telco could be cheaper.
For example, 1GB of mobile data on XT costs $54.95 on XT, and $49.95 on Vodafone.
At the 500MB level, XT has a slight edge at $34.95 to Vodafone’s $40.95.
Both telcos offer $1 a day plans with a 10MB cap. Telecom offers 120MB for $12 a month, Vodafone 100MB for $10. You get the picture.
Mike Reynolds contrasts the 1GB prices to those offered by his former employer in Singapore, StarHub, which offered that amount of mobile data for $S19 (about $NZ22); roughly the same as the price offered by Aussie telcos, according to market researcher IDC.
The chief executive also reels off voice and text plans that cost half the price in Singapore.
So, asked NBR, will Two Degrees ride to the rescue with its August launch, and offer mobile data at reasonable rates?
No.
Mr Reynolds says, “You’ve got to operate in the market you’re in”.
If the Commerce Commission moves on mobile termination rates (the price telcos pay each other when calls cross between their networks; Two Degrees would like it to be nil), then our maverick third mobile operator could, potentially, bust the market open.
But that may not happen.
Mr Reynolds fears that one of the most welcome XT pricing features for customers - its OneRate voice plans that see a single per minute price whether your call is on peak or off peak, on Telecom’s network or to a Vodafone, TelstraClear or (soon) Two Degrees customer - is designed to convince the Commerce Commission that telcos are doing enough by their own initiative for it to abandon its investigation into termination, or water down its determination.
Vodafone says Telecom is simply raising its on-set pricing to match its off-net pricing to match its off-net pricing.
Vodafone points out that $10 txt is a casualty. At Telecom’s investor briefing in Sydney today, head of retail Alan Gourdie flagged it was one of the telco aims to encourage its customers to talk more, and text less.
Other feature of XT’s plans is per-second pricing, currently unique to Telecom. A Vodafone spokesman points out that the first minute is always charged in full, with per-second pricing kicking in during the second minute. Most mobile calls last less than a minute (although arguably, that’s a chicken and egg situation, with keen bill watchers wary of talking into a second minute block).
Group plans are also a big feature of OneRate plans, with per-minute call costs dropping the more minutes you buy in your monthly plan.
Another XT play: calls outside your monthly "bucket of minutes" are charged at the same per minute rate as those inside the allocation you've already paid for.
Outside monthly-allocated minutes, a $14.95 Combo plan - the cheapest on offer - has a $0.75 per minute rate.
Shared-minute family and business plans, which let multiple cellphone users share one block of minutes per month, take per minute calls as low as 32 cents a minute.
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Comments and questions47
Can Telecom not carve out its own plans? Why just copy what Vodaphone has done?
Nothing original here and no more $10 text.
epic fail.
Yeah, because New Zealand and Singapore are so similar... same size, same govt structure, same population density...
No wait... We're more like Uzbekistan... Or Egypt. Or are we more like Thailand? Perhaps Turkmenistan.
I've been in bed with Vodafone since the first Alcatel mobiles, and ever since Telecom announced it was going to have a mobile makeover I was excited to the point of pure ecstasy, lusting over the fact that maybe just maybe the makeover will work.
And after a false start and nearing the climax you realize....
That you might need those beer glasses to get into bed with this one.
I'm asking myself is there any point getting out of bed with Vodafone who I already know warts and all. If Telecom's only surgical implant; as part of its mobile makeover, is 3G, speed in more areas and a OneRate offering...
Then Telecom you failed. Go back into the changing rooms cause you aint no Susan Boyle.
I've been in bed with Vodafone since the first Alcatel mobiles, and ever since Telecom announced it was going to have a mobile makeover I was excited to the point of pure ecstasy, lusting over the fact that maybe just maybe the makeover will work.
And after a false start and nearing the climax you realize....
You might need those beer glasses to get into bed with this one.
I'm asking myself is there any point getting out of bed with Vodafone who I already know warts and all. If Telecom's only surgical implant; as part of its mobile makeover, is 3G, speed in more areas and a OneRate offering...
Then Telecom you failed. Go back into the changing rooms cause you aint no Susan Boyle.
I can see people leaving the front of Telecom stores now, Good thing you can port in Telecom 027 numbers to Vodafone prepay. Go Vodafone prepay keep your 027 number.
OMG WHAT?!! No more $10 txt? Thats the only reason y i wanna join Telecom. I guess i have to stick with Vodafone then.
2 degrees would say that - If I were them I'd say that too - with no national coverage, a mix of 2G and a smattering of 3G and no DSL or landline offerings I'd be talking up price because its the only thing I as 2 degrees could offer....
how stupid am i? to actually think things were going to change. this is a huge kick in the balls. wouldn't surprise me if they fixed them with voda behind closed doors.sigh im really gutted.
Oh well, if vodafone are going to have 2000 texts for $10, i'll just stay with them. :(
On prepay, it works out cheaper and better value than $10 text
$20 top up = $25 credit
2 months $12 text = $24
so you spend $20 on top up, you will have $1 credit left after 2 months, and get 200 more texts for the two months
and if you top up more, you get even more bonus credit, and makes it even cheaper
I reckon it's great, I'll be moving on to XT ASAP
$12 text (600 texts) is cheaper and better value than $10 text on prepay
you get $5 bonus credit when you top up $20
and if you top up more, it makes it even cheaper
go XT!!!
There are five people queing at the store in wellington. None in Auckland. How sad...
this is what you get though when you tell people only the first one in the queue will get a freebie.
You have to go on account to get the TXT bundle so your $12 TXT story is wrong.
Stands for cross talk as in telecom all talk. Vodafone marketing must be rolling laughing on the ground
I been excited about competition not because I want to leave Vodafone but because I want Vodafone to come up with some sharper deals and so far its working. XT has always been all noise, the real excitement happens in August. I'm looking forward to it.
lame ass is clearly lame all round...the pricing table put out by Telecom /XT clearly states you can have the xtras on Prepay as well as On Account so you can get get the $12 texting
Don't expect anything overly exciting with 2 Degrees pricing plans.....I have a feeling that after Telecom's major disappointments today - 2 Degrees certainly won't be any better.
oh well...
I've been a Telecom customer on account for ages. Vodafone hasn't been a consideration because the plan I was on with Telecom was sweet. Since I need a phone that works in Oz I was looking forward to upgraging to Telecom XT but comparing those plans and with Vodafone's offers I'll be switching.
Telecom may have a goal of moving 675,000 current customers to their new XT network but they haven't offered us any incentive at all to stay. Dumb move. Let your feet do the talking...
Basic sales 101 - it's cheaper and easier to keep existing customers than to attract new ones!
Text bundle IS on prepay
What f**ktard would compare NZ to Singapore.
Tui ad!!!!
So Mr Telecom what was all the fuss about re XT???? Is Teresa Gauting still in charge ??? Bravo snacthing defeat from the jaws of victory. Just watch that share price today as you promised so much and delivered ummmm nothing.
I asked my partner what XT stands for - she is not a geek but it is clear that Telcom's ads aren't working...
The answer - that slow first PC we had - yes the IBM PC XT
Poignant?
It was very expensive, slow and quickly overtaken in the technology race that followed...
So here we are, Telecom finally making up for the giant f**kup that Theresa Gattung made choosing the wrong technology and sticking with it.
Yesterdays technology today.
If Telecom want to take down Vodafone they should re-hire Gattung, give her some (much needed) plastic surgery so she is unrecognizable, then attempt to covertly insert her into Vodafone at a management level, and just sit back and wait.
Telecom's Data Plans for On Account are very expensive, when compared to Vodafones & do not represent as good value, IMHO, see below:
http://www.telecom.co.nz/mobile/mobilebroadband/plansandpricing
=====================================================
Mobile Broadband on the XT Network is available on prepaid or postpaid and can be open term, but if you'd like to join for a fixed term then we'll give you a discount off the price of your XT Mobile Broadband modem from us.
Mobile Broadband 500MB $34.95 500MB
Mobile Broadband 1GB $54.95 1GB
Mobile Broadband 2GB $69.95 2GB
Mobile Broadband 3GB $84.95 3GB
All prices include GST.
If you choose the 1GB, 2GB or 3GB plan and you happen to go over your data allowance, then you'll automatically get a further 1GB of data to use in that month for just $15. And after that's used up, then each megabyte will cost 50c.
On the 500MB plan, the cost for each additional megabyte over the first 500MB is 50c
=====================================================
Vodafone's pricing on a term contract is:
http://www.vodafone.co.nz/shop/plansMobileInternet.jsp?plantype=data&billingMethod=onAccount&menuKey=mnit600004
1GB for $49.95 PLUS another 1GB for $10 = 2GB for $59.95
3GB for $69.95 PLUS another 3GB for $10 = 6GB for $79.95
Both of these plans are on a 24 month term - both offer $200 off the device on the 1GB Plan & $300 off the device on the 3GB plan discounts.
Additional Data is 50 cents per MB.
we are soooo behind. In the states they offer unlimited data plans. I must say i would be prepared to pay for one of those plans, but i suppose using your mobile handset for internet access is pretty new here in NZ. But come on Telecom. Ive been so excited that ive been promoting your new network and i work for an opposing Telco. Am pretty dissapointed, however I will still purchase my new handset that Ive been holding off buying unitl this network has been released and check it out. you still have an opportunity to convert this cynic.
Looking at the pricing I'll stick with Vodafone's Bestmates and the anytime minutes. On-net with Bestmates means I get to text and speak to my other half and whanau for fixed rate and the rest I'll call.
Either that or I'll take the iPhone subsidy and sign up for a plan... this is not enough to make me switch to XT - on the other hand, anomalies and legacy deals mean there's no real incentive to consolidate to one telco supplier either...
pity... opportunity lost.
so telecom xt turns out to just be another vodafone, just a different name and different colour. good luck to them getting the 700K new customers they are aiming for.
are they serious with 20 minute and 20MB! plans? 20 f*cking megabytes? is that even still a quantitive amount of data?
are they satellite phones? are we on the moon? in antarctica?
Telecom, Vodafone...it's all the same. It's all equal to my being ripped off. I traveled for 5 years, all over the place and generally purchased a mobile when I was in any one place for a reasonable amount of time. I come home to find exorbitant price plans and contracts I can't get out of. what a joke! Telecom has hyped XT up to be the answer we're all looking for; unsurprisingly it's not. I don't expect Voda to add anything either.
Thanks a bunch.
They use different bandwidths (850 vs 900 etc) - even when VF & XT have 'same phone' they usually are different frequencies for each network - there are a few exceptions.
Once you are over your 1GB + 1GB ($60-$70) (or whatever) you then go onto 50cents per MB - I make that $500/GB.
Think of the reward points you would get.
I'd really like to see Telecom make more noise about the bonuses. It's not something that most consumers work out automatically.
Without the bonuses XT looks like a VF clone in the pricing department.
The main problem I see is being the odd one out. Sure I'm fine with texting all my VF friends but they aren't going to text me back when VF still charges 20c/text. I think this is the biggest obstacle for migration right now, and I don't think it's going away.
4 out of 6 incoming calls have dropped the calls were from home lines I want my sanyo phone back working
Doesn't take a genious to work out which way we are being shafted.
I'm so in agreement with 95% of these comments.....when will the telco's wake up and smell the cappucino?
"You have to go on account to get the TXT bundle so your $12 TXT story is wrong"
No its not! you can add the $12 text to prepaid & postpaid
If anyone that is working in the ComCom reading these comments please, please PLEASE help us consumers. I'm begging you to use your influence to speed up the current investigation into the Telco industry. Consumers don't have any power, we cannot vote with our wallets when there are only two options "Dumb(VF) & Dumber(XT)".
Please use your democratic elected powers to help us. Here's an idea use 2degrees as your hammer to make changes in the industry. Any profits will go to the Government to help with Health, Education etc... it they don't the voters will kick their a*ss. But in the mean time please implement some rules cause we all could do with some savings.
Hey Dumb & Dumber I know why your price and offerings are so similar because then you wouldn't have a price war on your hands, like what happens internationally. The only way then of cementing your position and growing your market share is by keeping existing customers through Olympic sized Termination Fees while Marketing Teams come up with ways of increasing your "Coolness" Brand and so the only point of difference we consumers have is which telco brand relates to me most. The hip cool XYZ generation kids on the block (Vodafone) or the stylish Metro-Sexual, Cafe Latte drinking professionals (Telecom XT).
How many mobile networks have you built and run?
True Comms in Singapore is more advanced and cheaper.
None. Why do you ask? Did I say something you didn't agree with?
huh I don't speak to someone in Egypt if I call Telecom about my mobile - better than Vodaphone.
Per second charging is good too.
And bonus topups.
But why do people complain about the cost?
Always wanting something for free.
It costs more to run a network in New Zealand than it does in Singapore = stop comparing apples and oranges.
Someone asked what XT stands for and now we all know:
Xtortionate Telephones!!
Their data rates are even more third world. We should all just queue up behind the corporates and move to Aus where $50 buys you 5GB a month of mobile data rather than just 1GB. Here, it appears that Telecom's highest capacity mobile data plan would see that 5GB cost you over $1500 a month on one connection. You could I suppose buy 3 separate SIMs and swap them after each 2GB of usage to reduce it to about $150 a month but is that a retarded system or what?
Maybe that is how Telecom think they'll hit over 600,000 XT connections in a year - sell everyone multiple connections!
XT has no $10 txt and no best mate? POintless to use. They say they have faster speed? It seems the same... And who would call someone from some box in the middle of the ocean like that ad? Noone.
XT complete waste of time and money.. Just stick or move to Vodafone or wait and see wat 2degree has to offer~
I thought that a mobile phone was so you communicate with someone else, ie RINGING THEM. If that doesnt work, text them to leave them a message. Both Telecom & Vodafone need to reassess the majority of users. Its simple. I dont need DATA capability - I have a computer for that - which has a decent sized screen. I want to ring my friends, family, etc for the same price as I do from a home phone - or better!!! My woosh account charges $0.45 per min... and even that is expensive.
I'm waiting for 2degrees... I hope I'm not disappointed.
Why cant they just make it THAT simple?
No you dont have to go on account for the texts bundle, your wrong.
woteva u ching chongz u dnt noh nufink.well neva du i leave our country owt of dhz n goh pik 0n canada.u gaez.hahaha shame. :)
at the start they said that xt will get better service than just telecom
well my old 027 has full service were i live and xt dosnt even get 1 bar. that says alot for xt. vodafone is looking even better than befor..
No $10txt, but they have unlimited for $12 now. Don't know if it includes calls, but $12 unlimted to ANY NZ network seems like a good deal to. Only problem is, there coverage isn't that great apparently.
As we all know that on 2 degrees at the momment you can buy the $10 TXT Pack of 1000 texts to any network till the end of the year,But at the end of the year what will happen?they have already raised it this year from 500 txt to 1000 txt and the calling is alot cheaper than most networks at the momment, would it be a possiblity for another rise possibly 2000 txt to any network for $10 a month, I would definately stay with 2 degrees if they did that
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