Peter Griffin: Talk getting cheaper

The furore over the cost of high-speed internet access in this country and the failings of the wholesale broadband regime has diverted attention from another depressing fact: we pay too much for mobile phone services.

The standard daytime rate for calling from a Telecom or Vodafone mobile is still a savage $1.39 a minute. But revived competition between Telecom and Vodafone and the threat of further mobile phone regulation has started to produce better deals.

There are improved free-minute bundles, cheaper overseas and off-peak calling and the recently introduced three-minute hour, where pre-pay users pay for the first three minutes of a call but can talk for up to an hour.

Vodafone's You Choose plans, launched last week, continue the trend. There are no huge discounts but the new plans allow for less wastage and thus an opportunity to save money if you plan wisely.

Basically, Vodafone has broken down its on-account plans into six base calling allowances with optional add-on services.

You choose your base calling plan, ranging from $20 a month for 20 anytime national minutes to $370 a month for 1100 national anytime minutes. Then you choose add-ons, such as a text messaging allowance: $6 gets you 100 text messages a month to any mobile and $10 means 1000 text messages to other Vodafone phones.

Before, you had to choose a package that sort-of fitted your calling and texting needs. Now you can more accurately choose a bundle based on your behaviour.

When I was a Vodafone customer I was on a plan that gave me 200 off-peak minutes and 20 text messages a month. I rarely went over 100 off-peak minutes a month but sent hundreds of text messages, so ended up with a relatively large bill each month. Now you can have a low-minute calling plan, say 60 anytime calling minutes for $40 a month, then add on 100 text messages for $6 extra.

The add-ons are a good idea. You can add on 45 calling minutes a month to Australia, the UK, the US, Canada and Ireland for $15. If a family member goes overseas, you might take on a 90-minute international calling plan for $25 a month (in one or more of the five listed countries).

There are no penalties for changing up or down between plans as long as you don't go below the allowance of your original plan. Customers switching to the new plans get a subsidy on a new phone or extra core calling minutes. Subsidies range from $30-$500 depending on the account you sign up for and whether you buy a newer 3G phone.

You must sign up for a 24-month Vodafone account plan to take advantage of the deals.

Vodafone claims nearly half of its customers on Mobilise plans are exceeding their weekly airtime minutes allowance and getting stung with extra charges as a result.

Use the table on www.vodafone.co.nz/plans to work out the plan for you.

- HERALD ON SUNDAY