Vodafone going down the drain

mone, Nov 20, 8:30pm
I have mainly supported vodafone in the past, but it looks like they are losing tons of customers fast to telecom, esp with telecom starting to stock more smartphones now. It just feels like XT is faster speed where i live in auckland, and better for smartphones, i hardly use my vodafone mobile nowadays.

cybertao, Nov 20, 8:36pm
The lowest common denominator has spoken.

suicidemonkey, Nov 20, 9:24pm
Yeah agreed. I've never had an issue with XT. Great coverage and speed, and completely reliable. None of the "outages" they had have affected me.

lucky.gadgets, Nov 21, 12:44am
Vodafone need to completely change their strategy if they want to compete long term with 2deg

mone, Nov 21, 1:14am
In previous months on this MB I have always defended Vodafone. But cutting their 3GB data and offering 250MB on smartphone plans really is shocking. Plus increasing their $81 plan to $85 at the same time. You would think more competition would mean lower prices.

mone, Nov 21, 1:17am
To be honest, 2 Degrees is ok but it is not really a threat at the moment. It has about 10% of the market, and even worse, most of them are on prepaid. ARPU wise, they are even less of a threat. Revenue wise, 2Degrees has less than 2% of the market share.

mattnzw, Nov 21, 2:54am
They are a growth company, so their current plans I believe is getting as many customers first, rather than making money. Once you have that customer base, they can then offer then additional add on services, or join up with other partners to offer add on higher margin services.

I personally use telecom, and find their network providing more coverage, especially in rural areas. ALthough I also have 2degree and vodafone phones, but not used as much. Also a lot of NZers have shares in them, via funds managers, so it is supporting the NZ economy.

carkitter, Nov 21, 5:02am
You're quite right. 2deg is low end and Vodafone is high end. Vodafone would have to have a frontal labotomy to head down market to where the customers discretionary income disappears every time Lotto offers a big 1st division prize.

People think that just because Voda and 2deg sshare the same frequency range that they are direct competitors - they are not. Sure Vodafone had a few low-end customers but they have largely all defected now. What I've been saying since 2009 is that the company most at risk is Telecom because their customer base spends less and is less enamoured with high-tech phones. The lack of take-up of XT is evident of 2 things:
1) Telecom never really had the marketshare they said they did, it included huge numbers of 'glovebox phones' as Vodafone has claimed for a long time.
2) Customers who upgrade from CDMA to XT are spending on average 16% more (Telecom's own figures) and some are baulking at the cost and switching to 2deg.
Vodafone is in a whole different segment of the market to 2deg. Vodafone is currently losing high end smartphone customers to XT while they kid themselves their new Smart Plans are good value.

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