Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Explosive Call Growth A Factor In Price Rise

EXPLOSIVE CALL GROWTH A FACTOR IN PRICE RISE

The prices of some Telecom services will increase from February reflecting increased costs and explosive growth in calling.

The increases will affect Telecom’s standard monthly residential line rental, International Calls to mobile phones, the optional wiring maintenance service and Off-Peak National Calls. They are detailed below:

Monthly line rental The standard monthly residential line rental – which provides free local calling – will increase in February for the first time in more than three years.

The rental will increase by $1.71 to $38.05 (including GST) a month, except in the Wellington 04 calling area and Christchurch city and suburbs where it will increase by $1.40 a month to $31.35 (including GST).

“We’ve seen explosive growth in local calling and this has increased our costs,” said General Manager Marketing Kevin Kenrick. “Local calling has doubled in the past four years, due largely to increasing dial-up Internet access. Telecom has invested $119 million in its network to support this growth in free local calling over the past three and a half years.”

There will be no change in the prices of Telecom’s MessageLine, SKY-FI, TVLine, SmartLine, TalkLine, and HomeLine Plus packages. The prices have also not changed for HomeLine Economy (monthly residential charge of $24.75 including GST plus 20 cents per local call), 60s Plus (for those aged 60 and over, which features a monthly line rental of $21.25 including GST plus 11.25 cents per local call), and Budget Link (a service that includes line rental for $17.52 including GST per month available to people in financial difficulties).

In real terms after adjustment for inflation, no residential customer will be paying more for Telecom local service from February 2002 than they were in 1989. Under the Kiwi Share, Telecom agrees to limit any increase in standard monthly residential line rental to the rate of consumer price inflation.

International Calls to Mobiles Prices for International Calls to mobile phones in many countries will rise from 1 February.

Telecom had previously charged the same price for all International Calls even though overseas telephone companies charged Telecom more for calls to mobile phones, Mr Kenrick said. “However, mobile phone use is rising sharply worldwide and more calls from New Zealand are being made to mobiles. Also, International Calls to mobiles are getting significantly longer. We’re unable to keep absorbing the extra costs these changes are generating,” Mr Kenrick said.

The increase affects calls billed to residential HomeLines and to customers on Telecom’s standard business pricing as set out in Telecom’s List of Charges.

Wiring Maintenance The optional monthly wiring maintenance charge for residential customers will increase by 29 cents to $2.24 a month (including GST). “This is the first increase since 1997 but at $2.24, the service remains good value,” Mr Kenrick said. This change will apply with effect from customers’ February bills.

Off-Peak National Calls Off-Peak National Calls will increase by 4 cents to 19 cents per minute from 1 February. There will be no change however to Telecom’s capped price calls such as those included in its $3 Weeknights and Weekends, and $5 Anytime Plan. Capped price calling at weekends and weeknights gives customers the opportunity to talk for up to two hours and pay no more than $3.00 for the call.

These caps limited the price of many calls and had helped significantly reduce the average per minute cost of National Calls in the past three years, Mr Kenrick said. “Caps have changed calling behaviour. Increasingly, customers are looking at the total cost of a call rather than the per-minute price.”

The increase applies to calls billed to residential HomeLines.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news