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Unused data will not be carried over to the next month.
But Kiwi Mobile boss Luke Blincoe said a study of 1500 people commissioned by his company found 59 per cent of New Zealanders were paying for more data than they were using, and two thirds wanted more flexible plans.
Although Kiwi Mobile charges by the day, the actual billing cycle is weekly, week-to-week or monthly. If 5GB isn’t enough and you’ve used up all the data at the highest speed, you can reduce the speed or top up to 10GB ($1.60 per day), 20GB ($1.90), 40GB ($2.00) or 100GB ($2.10). You can upgrade or downgrade at will through the app.
The difficult situation of virtual players
Kiwi Mobile is known in the industry as a mobile virtual network operator, or MNVO for short. This means it uses the network of an established operator (in this case, 2degrees) and then sells its own branded version of the service, with its own plans and pricing mix.
You can get a Kiwi Mobile number starting with 026, or you can keep your existing mobile number.
You can bring your own phone but use a Kiwi Mobile Sim card, or if your phone supports it, use an e-Sim (software based setup, no physical Sim card required).
In some countries, notably the UK, where one in seven customers uses a mobile virtual network operator (MVNO), this model has helped foster competition in the mobile market.
But in the recent Telecom Monitoring ReportA Commerce Commission report released in June said the six MVNO operators, which include mobile services provided by The Warehouse, Mercury and Kogan-owned Mighty Ape, had a combined 77,000 customers, or 1.3 per cent of the market, down from 106,000, or 1.8 per cent, the year before. (The drop in customers was attributed to 2degrees’ merger with Vocus NZ, the owner of Orcon and CallPlus, two ISPs that had previously offered mobile services through MVNO agreements with Spark.)
Can Kiwi Mobile buck the trend?
Can Kiwi Mobile succeed where other MVNOs have yet to make any headway?
Mr Blincoe said Electric Kiwi had proven itself as an electricity retailer, with a market share of almost 4 per cent against the big retailers. He said the same outspoken mass appeal and flexibility through an app would be brought to the mobile market.
Back in 2019, when he was in charge of Orcon and CallPlus, Mark Callander, now 2degees chief executive, called it “shameful” when the Commerce Commission decided that no regulatory changes were necessary to give MVNOs more pricing freedom.
The regulator found that the market was highly competitive. disagree“We have been selling mobile plans through MVNOs for more than a decade and with 26,000 customers, we are the largest MVNO in the country.”
“Mark is like a poacher turned gamekeeper,” Blinko joked.
Although he would not reveal the wholesale prices involved, citing commercial confidentiality, the Kiwi Mobile boss said his company had secured a good deal with 2degrees and he did not share concerns expressed by others about the state of the MVNO market.
Blincoe, who runs New Zealand Power, has frequently criticised the state of the electricity market, including a statement last week saying his company was being forced to close the door to new customers because wholesale prices were “high enough to justify the price hike”.Completely blown up”.
But he seemed more reassured about the current state of the telecommunications industry.
“The market structure is not perfect, but it’s much better, much fairer and much closer to a level playing field than what we’re used to,” he said.
5G, WiFi calling
It is worth noting that Kiwi Mobile has full access to 2degrees’ network. In the early days of 5G development, MVNO customers will only be able to use 4G.
Kiwi Mobile customers can also enjoy additional services such as Wi-Fi Calling, a service launched by 2degrees that allows calls to regular mobile numbers over the wireless network when there is no mobile coverage.
This includes hotspots or sharing mobile data with laptops or other devices. Again, this has been a historical pain point for MVNOs.
The new operator does not offer fixed wireless services – which deliver broadband to homes or small offices over mobile networks as an alternative to landlines – but Blincoe said Kiwi Mobile may add that service in the future.
Blincoe said that while it runs on the 2degrees network, his company has its own apps, plans and technology-enabling tech stack, which adds to the differentiation of its offering.
$40 and under
To help you get started quickly, we’re offering a promotion for your first three months free, as well as an ongoing referral program that offers 15 cents off your daily rate if you invite one friend to join, and 30 cents off if you invite two.
Direct comparisons are difficult to make in a market where operators offer different feature bundles at different prices, which hinders direct comparisons. But there are signs that competitors are aware of the coming competition. For example, Spark’s budget sub-brand Skinny is temporarily offering a 10GB top-speed plan for $20 every four weeks instead of the usual $40 – at least for the first three payment cycles.
2degrees’ 5GB renewal plan costs $40 per month, but does not come with unlimited calls and texts (unlimited calls and texts cost $50).
MVNO Kogan Mobile (which uses One NZ’s network) offers a deal that includes 4GB of data for $25 a month, plus unlimited texts and calls – but there are few other strings attached, and you have to pay $250 upfront.
Blincoe’s version of the deal is that Kiwi Mobile customers will be able to switch daily rates within the same plan via the app, which will be cheaper for those who need flexibility.
No bundled power supply at this time
Bundling mobile and electricity would make Kiwi Mobile stickier, but there are no plans to bundle the two. He said the lack of bundling had nothing to do with Electric Kiwi’s recent move to close the door on new customers. “Our strategy to launch mobile was born long before the wholesale (electricity) pricing issues started to escalate.”
He said he was confident Kiwi Mobile could sign up “tens of thousands” of customers in its first year.
Chris Keall is from Auckland The HeraldHe joined The Herald In 2018, he served as Technical Editor and Senior Business Writer.
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