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Data Roaming Usage Skyrockets with New Flat Daily Rates

Media Release

7th February, 2013


Data Roaming Usage Skyrockets with New Flat Daily Rates

Telecom’s new international data roaming pricing is resonating strongly with Kiwi travellers with a significant spike in overall roaming and data usage following the company’s introduction of new pricing late last year.

The new pricing features flat rates for data roaming in the top travel destinations (accounting for 90% of Telecom’s total data roaming traffic) and significant pricing reductions in all other markets.

The objective of the new pricing was to provide greater certainty and simplicity for customers, allowing them to access and use mobile data on their smartphones and tablets as they would when in New Zealand. The flat rates are $6 per day for Australia and $10 per day in other key markets including the USA, UK and China*.

“Our new pricing was launched just a few days before Christmas but we’ve already seen a marked change in how customers use their smartphones when overseas,” says Telecom CEO Simon Moutter.

During January, Telecom customer data roaming usage (in terms of total megabytes consumed) was up 174% for Australia, and up 193% in the $10 per day markets compared with January 2012.

“This is a significant spike in data consumption from previous growth trends,” says Mr Moutter. “For example, in November 2012, the month before our new pricing came into effect, year-on-year data roaming growth was tracking at 6% for Australia and 26% for the $10 a day markets.

“Not only are we now seeing fantastic year-on-year growth, data usage continued to increase as we entered the holiday period – reversing the usual declining trend due to reduced business usage and corporate travel.

“We took a punt with introducing our new flat rates in the hope that the certainty and simplicity they offered would encourage our customers to make full use of their smartphones while roaming overseas. Previously our research showed that many people switched off their data roaming function, or used data extremely sparingly, because they were unsure of what they would find on their phone bill when they returned home,” continues Mr Moutter.

“It’s great to see our customers giving the flat rates a strong ‘thumbs up’ and benefiting by staying connected and using the many fantastic apps now available when they are overseas. We have a vision of a data-driven future and it seems our vision is being shared by our customers.”


*Telecom’s Fair Use Policy applies to these rates. http://goo.gl/2EgJG. The $6 Australia daily price is valid until 30 June 2013


ENDS


Telecom’s Roaming Pricing (effective 21/12/12):

POSTPAID NEW RATESPOSTPAID OLD RATES
DataVoice OutboundDataVoice Outbound
Zone 1: Australia, Christmas Island$6 / day49c / min$2.50 / MB75 c / $4.00 min
Zone 2: UK, USA, Canada, China, Hong Kong, Macau, Taiwan, Saudi Arabia$10 / day$2.49 / min$8-$30 / MB$2.40-$5.00 / min
Zone 3: Fiji, Japan, Korea, Thailand, Vietnam, Philippines, Malaysia, Singapore, Indonesia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, South Africa$2.50 / MB$3.49 / min$20-$30 / MB$3.40-$5.00 / min
Zone 4: Rest of World$5 / MB$4.49 / min$30 / MB$5.00 / min
NOTES: Voice Calls Outbound: Previously, two rates applied: a rate for roaming calls either back to NZ or to a local number in the overseas market; along with a $4.00 / min charge for roaming calls from any overseas market to a number in a third market. Now, just one rate for any type of voice call will apply in a particular market.
Voice Calls Inbound: Rate unchanged at $1/ min to receive voice calls across all markets.
Text Messages Outbound: Rate is unchanged at 80c / text across all markets.
Text Messages Inbound: Remains free to receive texts across all markets.
PREPAID NEW RATESPREPAID OLD RATES
DataVoice OutboundDataVoice Outbound
Zone 1$1/MB49c / min$4/MB89c/min
Zone 2$2.50/MB$2.49 / min$8-$30/ MB$2.89-$5.89 / min
Zone 3$5/MB$3.49 / min$30/MB$3.89-$5.89 min
Zone 4$8/MB$4.49 / min$30/MB$5.89 / min

ENDS

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