2degrees raises stakes in mobile price wars

Rhys Darby in a 2degrees Mobile ad. Photo / Supplied

2degrees has cut its international roaming rates and now offers the cheapest mobile internet and calling prices for New Zealanders travelling across the Ditch.

The company cut more than 90 per cent off its roaming data rate, dropping per-megabyte prices from $30 to $2.50.

The company's calling rates were slashed from $1.39 to 44c a minute - the same rate as 2degrees' local calls.

2degrees now charge 44c for roamers to receive a call and 79c for every text message sent.

The cuts shot 2degrees from being the most to the least expensive telco to roam with.

Vodafone is now second best for calling or surfing the web in Australia, charging 79c a minute for calls and $5 a megabyte for data.

Telecom's call price of 89c a minute and casual data rate of $8 a megabyte is now the most expensive, however the company does offer a Trans-Tasman data package of 100 megabytes for $100.

2degrees also introduced data packages yesterday, which can be used in Australia, the United Kingdom and the United States.

The casual data rate of $2.50 can also be used in the US and UK.

Vodafone said yesterday it would look to match or better the new charges. A Telecom spokesperson was unclear on the effect its competitors' move would have.

Telecommunications User Association chief executive Paul Brislen said prices were coming down, but there was still room to move.

"The bug-bear is with data, prices are still high when you consider what you pay [in New Zealand]," he said.

2degrees' chief marketing officer Larrie Moore said the company was able to lower rates because it struck wholesale deals with mobile carriers overseas.

Roaming prices are being investigated by the Australian and New Zealand Governments, who are looking to see if there is competition in the market and if regulation is needed.

What you pay to use a mobile phone while roaming in Australia
Making a call
2degrees: 44c/min
Vodafone: 79c/min
Telecom: 89c/min

Receiving calls
2degrees: 44c/min
Vodafone: $1.00/min
Telecom: $1.00/min

Text messaging
2degrees: 79c/message
Vodafone: 80c/message
Telecom: 80c/message

Mobile data
2degrees: $2.50/MB*
Vodafone: $5.00/MB
Telecom: $8.00/MB*
(internet/email)

*Telecom and 2degrees have deals on data if bought in bulk