2Degrees slashes prices for calls and texts

Photo / Northern Advocate

New mobile phone operator 2Degrees is to slash the cost of texting and calling over its network.

From Wednesday the mobile phone company will drop the cost of texting another 2Degrees phone from 9c to 2c.

The cost of calling a landline or another 2Degrees user will fall from 44c a minute to 22c a minute.

Telecommunications Users' Association CEO Ernie Newman says it's about time consumers were offered cheaper rates.

"Calling rates have been falling all over the world. New Zealand hasn't seen it up until now because of the duopoly with Telecom and Vodafone."

The biggest cost to mobile phone companies is in the initial set up, according to Newman.

"2Degrees has invested millions of dollars in setting up shop here.

"They're hungry for business and low prices is one of their strategies. They need to get the customers signed up to generate a profit."

2Degrees says it is able to offer the lower prices because it has signed up far more customers than it had anticipated since launching in August.

Chief brand and marketing officer Larrie Moore said the new rates would kick in for their more than 200,000 customers when they next topped up their phones.

Moore said: "These are the sharpest rates in the New Zealand market."

Chris Vincent, 52, says he changed to 2Degrees because Vodafone has poor coverage in Devonport, where he lives, and at his Mangawhai beach house.

Cheap overseas calling was also a big drawcard, as he regularly calls China for business.

"And when overseas clients come over I'll buy them a 2Degrees' sim card. For $2, they're off and away," he adds.

So far 2Degrees offers only prepay and auto-topup payment plans, but Moore said postpaid contracts were in the pipeline.

Pre-pay pricing:

2Degrees

* Texts: 9c to anyone / 2c to another 2Degrees phone
* Calls: 44c a minute to anyone / 22c a minute to another 2Degrees phone or a landline

Vodafone

* Texts: 20c to anyone / $10 for 2000 texts to other Vodafone phones (per month)
* Calls: 89c a minute to anyone

Telecom

* Texts: 20c to anyone / $6 for 150 texts to anyone (per month)
* Calls: 89c a minute to anyone