2degrees kicks off with price pledge

Larrie Moore says 2degrees would end the differentiation between pre-paid and on-account customers. Photo / Supplied

New Zealand's third mobile network officially kicks off today with a promise to cut calling costs, particularly in the prepaid market.

2degrees marketing manager Larrie Moore said the New Zealand market has some of the highest prices and lowest usage in the world.

"To actually get value in this market you have to sign up to contracts or commit yourself to a fixed monthly fee," said Mr Moore.

He said 2degrees would end the differentiation between pre-paid and on-account customers.

Costs start at 22 cents per minute to call another 2degrees customer, rising to 44 cents to call other mobiles, local landlines and a selection of international countries for the totally prepay offer.

Telecommunications Users Association head Ernie Newman said the prices were lower than he had anticipated.

"They certainly bear out what our organisation has been saying which is that New Zealanders have been paying absolutely over-the-top [prices] for mobile phones for a decade or more," he said.

Telecommunications analyst Rosalie Nelson of IDC said the simplicity of a single price regardless of who, when or where you call was attractive.

However, Ms Nelson said the New Zealand market had also become accustomed to the text and voice "bundles" - best mate, favourites, $10 text and the like - offered by Vodafone and Telecom which are not available with 2degrees.

Reaction posted on the 2degrees Facebook page was mixed with some wanting 2degrees to match Telecom and Vodafone's bulk text deals.

Ms Nelson anticipated a move to people owning more than one sim to take advantage of text and calling deals offered by different networks.

There was also disappointment at the 50c per megabit data pricing - more expensive than both Vodafone and Telecom - from those that relied on mobile data to use email and internet service on their phones. ABN Amro Craigs analyst Geoff Zame said until the network was upgraded to 3G data services were obviously not a focus for the company.