Vodafone’s New Zealand unit, taking a page from the U.K. broadband playbook, has launched «free» broadband to those taking its landline phone service in a blatant move to lure customers away from increasingly beleaguered incumbent Telecom New Zealand (TNZ).
Not to be outdone, competitor Orcon, which is Kiwi-owned, also unveiled free VoIP to those who buy its broadband and only for the first 5,000 customers to rush to sign up.
The moves comes barely a week after TNZ opened up two of its exchanges to a pair of its competitors – the very selfsame Vodafone, via its iHug subsidiary, and Orcon, the Number Three ISP in New Zealand – for a trial of local loop unbundling (LLU) (TelecomWeb news break, Aug. 9). «Customers are demanding cheaper broadband, and free is as about as cheap as you can get,» says iHug CEO Mark Rushworth. The offer, he continues, «sends a clear message to our competitors that we’re serious about offering full telco services to all New Zealanders. This is the first time customers can get their home phone and broadband from their favorite mobile provider.»
Well, not quite.
TNZ, which is being forced by the government to implement LLU, struck back at Vodafone where it hopes it will hurt most – in the cellular business. TNZ just inked a deal with TelstraClear under which the wholly owned subsidiary of Australia’s Telstra will become a mobile virtual network operator (MVNO) operating on TNZ’s network. TelstraClear, which also sells broadband and fixed-line voice (it’s Number Two in the market, behind TNZ), had been operating on the Vodafone network in a deal that ended somewhat acrimoniously in June. TNZ, Vodafone and TelstraClear are the only cellular carriers in the country.
The Vodafone «free broadband» offer is being made to anyone who transfers existing phone service from Telstra, and it costs $51 per month, including a $17 toll-call package. The broadband by itself usually costs about $25, and the price is good for one year. Orcon, meanwhile, is asking a somewhat higher $67, with the main difference between the two offers apparently being the data download included – Vodafone’s allows 1 GB without further charge, Orcon 20 GB. In addition to limiting the deal to the first 5,000, the Orcon deal is a limited-time offer. A very short time: It ends on Friday.
TNZ Acting CEO Simon Mouter, meanwhile, in an interview on Radio New Zealand, reportedly said the company is watching but has no intention of attempting to match either deal. He called the Orcon deal a «publicity stunt,» and he insisted Vodafone’s deal is not as good as it appears. Still, while not calling it a competitive response, TNZ just announced a package of extras for its Internet subscribers, including a personalized home page, photo storage and free anti-virus software.
TNZ’s three-year MVNO deal with TelstraClear also looks to have triggered yet another vicious battle. At issue are an estimated 11,000 business customers, with about 40,000 phone lines, whom TelstraClear had signed under its deal with Vodafone. As far as Vodafone is concerned, TelstraClear was just its agent, and it owns those subscribers. TelstraClear, needless to say, thinks it owns those customers and they should migrate with it to the new service. Both Vodafone and TelstraClear are said to have begun notifying those users of the conflicting claims.
Fuente: TelecomWeb
