Vodafone returns to handset subsidies

Will be interesting to see whether these subsidies will come in the
form of free on an $x plan, or simply cheaper handset repayments.

Also I wonder what Telstra's proposed "aggressive" contract offers mean
exactly. "Attractive bonus product"... PSP? iPod nano? Free petrol?
Leather case?

=-=-=
http://australianit.news.com.au/arti...nbv%5E,00.html

Vodafone U-turn on subsidies
Michael Sainsbury
OCTOBER 12, 2005

VODAFONE has been hit in the fierce mobile price war it started last
June, and will reintroduce handset subsidies and customer contracts as
the industry gears up for its annual Christmas bonanza.

Vodafone's strategic backflip would see contracts and subsidies
reappear for its new data-focused third generation (3G) service due for
launch by the end of this month, Vodafone Australia chief executive
Russell Hewitt said. "Where appropriate, we're introducing the option
of contracts on a selected basis to help customers reduce and better
manage their purchase of new handsets and other mobile accessories," Mr
Hewitt said.

Market analysts said this was the start of a broader trend.

"We believe the introduction of 3G services by all mobile operators
over the next three months will see a resurgence of handset subsidies,
which could go as high as 100 per cent of the phone's value if we look
at Hutchison's latest initiative," Citigroup analyst Tim Smeallie said.

Last month Hutchison, the industry's smallest player, released a Sony
Ericsson 3G handset worth up to $750 retail on a contract plan for $0.

Vodafone is also preparing for an assault on the small and medium
enterprise (SME) market, which has recently proved the only bright spot
for ailing industry No2 Optus.

"With the mobile phone market reaching saturation point, the only way
to win new customers is to take them from the other carriers," Mr
Hewitt said.

"We are now ready to make our biggest play ever for a greater slice of
the Australian business market, particularly within SOHO (small
office/home office) and SME. The time is right for us to challenge the
incumbent operators in the business market. With our 3G launch
imminent, mobile broadband will soon become a reality and with
high-speed data transfer comes the ability to better service the needs
of business."

The move back into subsidies follows a decision by Vodafone to raise
prices for a number of services within its capped plans.

These would take effect from November 13, Vodafone spokeswoman Juliet
Simpson said.

The country's No3 mobile network has had a surge of new customers over
the past 15 months, adding 671,000 users between July 2004 and June
2005. But the vast majority of customers have been on capped plans,
which have a much smaller effect on the bottom line than traditional
contract plans.

Mr Smeallie said: "Given all operators are moving down the capped plan
path, the only real differentiating factor could prove to be the
handset."

In the past six weeks players in the sector have been falling over one
another to release new products, services, applications and other
tweaks to existing offerings they hope will catch the eye of customers.

Much of the action, such as Telstra's release of its first 3G handsets
last month, is aimed at positioning for the lucrative Christmas period,
during which up to 40 per cent of the year's new business is done.

Telstra spokesman Warwick Ponder said Telstra would launch "aggressive"
contract mobile offers for Christmas for the company two 3G content
platforms, Active and i-mode.

"While we can't provide all the details to our competitors at this
stage, we can say that customers that purchase a post-paid mobile in
the lead-up to Christmas will receive a very attractive bonus product,"
Mr Ponder said.

The Australian

> Also I wonder what Telstra's proposed "aggressive" contract offers mean
> exactly. "Attractive bonus product"... PSP? iPod nano? Free petrol?
> Leather case?

Leather case, heh

> Vodafone U-turn on subsidies
> Michael Sainsbury

He's an idiot.

> Last month Hutchison, the industry's smallest player, released a Sony
> Ericsson 3G handset worth up to $750 retail on a contract plan for $0.

So? is it $750 retail on a contract plan for 24 mths at $100, for $0?
Or is it a $22 plan.

Idiot

> The country's No3 mobile network has had a surge of new customers over
> the past 15 months, adding 671,000 users between July 2004 and June
> 2005. But the vast majority of customers have been on capped plans,
> which have a much smaller effect on the bottom line than traditional
> contract plans.

Mainly prepaid, most of who will never recharge

"Michael" <michael@yahoo.com> wrote in message
news:45r4f.19429$U51.9624@news-server.bigpond.net.au...
>> Also I wonder what Telstra's proposed "aggressive" contract offers mean
>> exactly. "Attractive bonus product"... PSP? iPod nano? Free petrol?
>> Leather case?
>
> Leather case, heh
>
>> Vodafone U-turn on subsidies
>> Michael Sainsbury
>
> He's an idiot.
>
>> Last month Hutchison, the industry's smallest player, released a Sony
>> Ericsson 3G handset worth up to $750 retail on a contract plan for $0.
>
> So? is it $750 retail on a contract plan for 24 mths at $100, for $0?
> Or is it a $22 plan.
>
> Idiot
>
>> The country's No3 mobile network has had a surge of new customers over
>> the past 15 months, adding 671,000 users between July 2004 and June
>> 2005. But the vast majority of customers have been on capped plans,
>> which have a much smaller effect on the bottom line than traditional
>> contract plans.
>
> Mainly prepaid, most of who will never recharge

That statement is wrong

> Also I wonder what Telstra's proposed "aggressive" contract offers mean
> exactly. "Attractive bonus product"... PSP? iPod nano? Free petrol?
> Leather case?

Hmm... apparently it's to be a "Bluetooth-equipped Hewlett-Packard
photo printer" gift with purchase of 1MPx+ handsets
http://australianit.news.com.au/arti...nbv%5E,00.html

"Giles" <call125111@email.com> wrote in message
news:1129601638.711436.99150@g49g2000cwa.googlegro ups.com...
> > Also I wonder what Telstra's proposed "aggressive" contract offers mean
> > exactly. "Attractive bonus product"... PSP? iPod nano? Free petrol?
> > Leather case?
>
> Hmm... apparently it's to be a "Bluetooth-equipped Hewlett-Packard
> photo printer" gift with purchase of 1MPx+ handsets
>
http://australianit.news.com.au/arti...nbv%5E,00.html
>

Mindless promotion, just encourages fraud.
Stupid Vodafone

"thegoons" <thegoons@bigpond.com> wrote in message
news:1129470045.61d6da17afc9657208932161288fd62c@t eranews...
>
> "Michael" <michael@yahoo.com> wrote in message
> news:45r4f.19429$U51.9624@news-server.bigpond.net.au...
> >> Also I wonder what Telstra's proposed "aggressive" contract offers mean
> >> exactly. "Attractive bonus product"... PSP? iPod nano? Free petrol?
> >> Leather case?
> >
> > Leather case, heh
> >
> >> Vodafone U-turn on subsidies
> >> Michael Sainsbury
> >
> > He's an idiot.
> >
> >> Last month Hutchison, the industry's smallest player, released a Sony
> >> Ericsson 3G handset worth up to $750 retail on a contract plan for $0.
> >
> > So? is it $750 retail on a contract plan for 24 mths at $100, for $0?
> > Or is it a $22 plan.
> >
> > Idiot
> >
> >> The country's No3 mobile network has had a surge of new customers over
> >> the past 15 months, adding 671,000 users between July 2004 and June
> >> 2005. But the vast majority of customers have been on capped plans,
> >> which have a much smaller effect on the bottom line than traditional
> >> contract plans.
> >
> > Mainly prepaid, most of who will never recharge
>
> That statement is wrong

Which part, the prepaid or never recharge?
>
>

> > > Also I wonder what Telstra's proposed "aggressive" contract offers mean
> > > exactly. "Attractive bonus product"... PSP? iPod nano? Free petrol?
> > > Leather case?
> > Hmm... apparently it's to be a "Bluetooth-equipped Hewlett-Packard
> > photo printer" gift with purchase of 1MPx+ handsets
>
> Mindless promotion, just encourages fraud. Stupid Vodafone

Agreed, but it's your mob flogging it, not Vodafone