The Vodafone New Zealand - Essay Example

The Vodafone New Zealand ConclusionNew Zealand has the distinction of being one of the most expensive countries in the developed world to make a mobile call. The operators argue that distinctive local factors have resulted in their reluctant decision to charge more than their counterparts elsewhere in the world. However according to Paul Budde of Budde Comm, global telecommunications analyst-“the real reason for high mobile charges in New Zealand is that they charge more because they can”.

Reasons cited are the unfavorable mix of mainly unregulated mobile market, absence of technology platform competition (Telecom uses CDMA whereas VNZ uses GPRS)-that makes consumers vulnerable for being picked. He disputes geography and population dispersion as claimed by the operators. The next regulation influenced opportunity for a surge in competition and a consequent drop in mobile pricing could be number portability.Recommendations for Vodafone New Zealand3G Network: Reviews about Vodafone’s 3G networks shortly after its launch rendered all its marketing efforts ineffective.

The company charged an exorbitant $3.5 for one music track. Phone battery and storage capacity were also written off as substandard. The company’s arch rival Telecom NZ registered 60% revenue growth in the same service segment over the review period (April to June 2005).Vodafone was relying on its 3G services for sustaining its market leadership position. However, its cellular networks need overhauling for seamless services.Number Availability: Telecom has an edge over VNZ regarding number availability on its 027 network.

While Telecom has nearly ten million numbers in it’s available pool VNZ has roughly three million.GPRS Speed Limitations: Vodafone’s slogan-“GPRS Business at full throttle” is somewhat misleading, as speed is a major limitation of its GPRS mobile data network. The average mobile data speed varies between 20 to 50 Kbps to and from wireless mobile devices over the Vodafone network. Therefore, it is too slow for transfer of files like word documents or power point presentations; it could take anything fro eight to ten minutes for a one-mega byte transfer.

Yet again, Telecom has an edge over Vodafone when it comes to the speed factor. The average speed of Telecom’s JetStream mobile service is nearly twice as that of Vodafone,’s-it peaks over100kbps.Vodafone’s GPRS limitations are aggravated by a clogged network. Solution developers suggest the use of compression technology and building intelligence into server environment so that information packets can be transferred keeping costs and transmission light and quick REFERENCES1) Scoop Independent News.

2007 New Zealand-Mobile and Broadband.18th Dec 2006Press Release: Paul Budde Communicationhttp://www.scoop.co.nz/stories/SC0612/S00043.htm2) Paul Budde Communication. “Can we sort out the mobile mess in New Zealand?”http://www.scoop.co.nz/stories/HL0705/S00015.htm3) “Nokia supports Vodafone 3G HSDPA launch in New Zealand”-10th Oct 2006http://www.3g.co.uk/PR/October2006/3747.htm4) “Vodafone plays the video calling card.”-Jenny Keown, 25th November 2006.http://www.nzherald.co.nz/section/story.cfm?c_id=5&objectid=104123755) “Mobile data prices slashed”-Paul Brislen,21st Dec 2004.

http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=90040606) “Clemenger crosses the line to Vodafone”-John Drinnan,27th April 2007.http://www.nzherald.co.nz/section/story.cfm?c_id=5&objectid=104363837) “Vodafone says no plans to sell Australian, New Zealand business.”-18th May 2007.http://www.communicationsdirectnews.com/do.php/100/244448) “Vodafone 3G network services in New Zealand face a problem”-September 2005.http://findarticles.com/p/articles/mi_m0NZB/is_9_7/ai_n157537939) Vodafone Corporate Responsibility Report 2006http://www.vodafone.com/etc/medialib/attachments/cr/downloads.Par.93747.file.pdf 10)10)Marketing Insights from A to Z-Philip Kotlerhttp://ecommerce.ama.org/bbr/pdf/Marketing_Insights.pdf.