New Zealand will be the first country in the world to get the Apple iPhone 3G, because of the country's position on the international dateline. Vodafone NZ is the carrier which is offering the iPhone, but its pricing plans - released today - have attracted a storm of criticism. Vodafone NZ has decided to charge extortionist prices for the iPhone 3G. Kiwis (including yours truly) are naturally outraged.
The top of the line price is $250 per month for the 16GB iPhone 3G (plus $349 to buy the phone). For that kiwis get a comparatively measly 1GB data per month and have to sign for a 24 month contract. The cheapest deal for kiwis is the 8GB black iPhone 3G, for $80 per month (but you have to shell out $549 clams for the phone). Here are the full details from Vodafone NZ's website::
But here's the actual total cost, courtesy of Ben Gracewood and Geekzone:
Note that kiwis can just buy the phone only, without the plan. But the price is a far cry from the $199 touted a month ago when the iPhone 3G was announced by Steve Jobs. To buy the phone sans plan will cost kiwis $979 for the 8GB and $1129 for the 16GB.
Unfortunately this goes to show once again that phone carriers are greedy opportunists. It also makes a mockery of Apple's claims at its conference last month that it would cost just $199.
On local television news tonight, TV3 presenter John Campbell grilled Vodafone marketing executive Mark Rushworth, noting that Vodafone was "charging like a wounded bull". The Vodafone spokesman had no response, other repeating than a rote description of their outrageous pricing plans. You can see a video of the interview here.
There is a petition on Facebook, started by Michael McGimpsey. Go sign it, even if you're not from NZ (very likely, given that less than 1% of our readers are from there). Carrier greed worldwide is probably the major reason why the Mobile Web is struggling to take off.
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Vodafone are showing how incredibly greedy they are. I am appalled! There plans are a total Rip Off. Like the article says, it makes a mockery off Apple saying you could get the phone for $199. I have started a Facebook group as a peition against Vodafone and there incredible greed. Please sign it. (click my name for link).
Posted by: Spuds | July 8, 2008 1:44 AM
Yeah, it is outrageous...but par for the course here in NZ. We have a duopoly so they can get away with it.
I'm over the outrage now, just disappointed that Vodafone NZ didn't do something better to really promote the use of the mobile web here. With this kind of data pricing it remains an expensive luxury instead of a handy utility. Gutted.
Posted by: Charles
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July 8, 2008 1:54 AM
Thanks for bringing some attention to Vodafone's outrageous pricing. It makes the Rogers pricing in Canada look cheap and cheerful!
Posted by: Stuart Maxwell
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July 8, 2008 2:02 AM
It's not just the NZ iPhone plan prices that are expensive, all NZ Vodafone 3G data plans are bad. I would like to see an unlimited plan for $49/month, keeping in mind you also need a phone plan with that as well.
Some problems with the data plans:
1) Too expensive.
2) The fact you have to pay $10 more per month not to be on a contract.
3) The fact if you go over your GB allotment, you are charged per megabyte. There is no option to drop the speed instead.
4) There is no unlimited plan.
Why not charge by speed and have all plans unlimited? eg.
128KB/s = $19/month
Unlimited = $49/month for example.
Probably because the speeds are so bad anyway, so never mind...
The only good thing Vodafone has done for consumers in a long time, is to promise to keep NZ phones unlocked. I wonder if this includes the iPhone?
Until there's an unlimited plan for a decent amount, I'm sticking with PrePay & WiFi only. Nice one Vodafone, You're missing out on $49/month.
Posted by: Tim | July 8, 2008 2:27 AM
Vodafone had a brilliant opportunity with the iPhone to get the average phone user consuming data + instill a bit of customer loyalty pre the Telecom GSM rollout. Boy did they blow it.
Posted by: Matt Harman | July 8, 2008 3:09 AM
NZ will never get an unlimited mobile data plan for $49 - that's better than a fixed line provider! If anything, I think the price will go down to roughly fixed line prices over time (mainly in order to compete with fixed line). So I'd predict $49 could eventually get you around 3 GB.
Posted by: Jono | July 8, 2008 3:09 AM
This made me laugh:
http://twitter.com/brownsandals/statuses/852562285
A salient point one thinks...
Posted by: maetl | July 8, 2008 3:10 AM
It seems you're even worse off than we are in Denmark.. We have to pay 390 NZ dollars for the 8GB phone and 170 a month for the only plan they're offering, which includes 300MB of data (How stupid is that!?), unlimited SMS, unlimited MMS, 300 minutes of talk and free surfing on any of their 190 "HomeRun"-hotspots (http://cphcreatives.dk/url/1590/) around Denmark.. The upside is that they aren't allowed to keep us for more than 6 months, and the price of the plan drops to 110 NZ dollars when the 6 months are up..
Posted by: Benjamin A. Wendelboe | July 8, 2008 3:29 AM
WTF? $6k wot?!?
Wasn't vodafone nz just saying that they were reducing casual data charges to $1 for 10meg? (down from $10 per meg, LOL) that would make it $30 a month for 300 meg? or iPhones need a special SIM card or something?
I guess with the 6k plans they're purely targeting earlier adopters who tend to be really stupid with money and don't do the math before buying stuff
vodafone's got a history of being shonky - i remeber seeing a finance offer for a first generation pxt phone that was ONLY $20 per week, which worked out to be finance with 115% interest.
Posted by: Steve Boyd | July 8, 2008 4:39 AM
Forget 3G, enter Wifi...
This situation just screams for more public wireless access, city wide mesh networks and the like. That way you are no longer dependent on a very small number of mobile phone providers.
Here's a few pointers:
* http://www.fon.com/ : Home Wireless Hotspot community. Basic idea is that if you share your connection, you can use anyone elses connection for free. Super easy to setup, they sell cheap plug & play hardware. Not available in Australia or New Zealand yet, but anyone can set up a local competitor.
* http://www.cantenna.com/ : broadcast wifi signal over huge distances; so no excuses that this won't work in the country side.
* http://www.open-mesh.com/ : Cheap tools to set up a mesh network; that basically means a decentralized network. In other words, if enough people participate you can send data for free from one end of a city to the other at very high speeds.
These are solutions that can be build bottom up by communities and if successful will wet Vodaphone's pants, because they will lose a lot of money on their useless unaffordable 3G network.
Posted by: Sjors | July 8, 2008 7:28 AM
Here's a quick fix for your outrage-- don't buy it.
Don't project your outrage at yourself (that you are going to buy it regardless of price) onto others, as though you're just looking out for the less fortunate.
Also interesting-- not much of the outrage is directed at Apple-- no chance that they had a ton of leverage and that Vodafone may have to charge this much to make up for whatever concessions they made to get the iPhone?
Outrage-- things have got to be pretty damn good in this world for someone to use the word 'outrage' over a phone pricing plan that you voluntarily accept. Good Lord.
Posted by: Morgan | July 8, 2008 10:36 AM
yup - vote with your wallets, don't buy it.
I feel better about our RM99/month(USD 33)unlimited data plan here in M'sia now - and hsdpa is in nearly all urban areas too.
Damn worried about data roaming charges when i visit NZ shortly tho!
Posted by: Paul Moss
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July 8, 2008 10:42 AM
Spuds said...
I have started a Facebook group as a peition against Vodafone and there incredible greed.
The solution is easy. Don't buy Vodafone's products & services after all, Vodafone doesn't come with a gun and force consumers to buy its services & products. Vodafone's products belong solely to them and not the consumers. It is they who decide the price and not the whinging potential consumers.
Posted by: Falafulu Fisi | July 8, 2008 11:42 AM
I'm with @Morgan on this one
easiest solution is to say no - go with another network and another device....
Posted by: Ben Kepes
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July 8, 2008 1:10 PM
Have you seen the pices in Belgium (where phone+service combos are prohibited)? 525 EUR for an 8GB iPhone, and at least 30EUR per month for a measly 250GB of traffic?
Posted by: AnonymousBelgian | July 8, 2008 3:11 PM
I blogged my thoughts on this over here: iPhone in New Zealand: Vodafone's Greed
Posted by: David | July 8, 2008 8:48 PM
I came in to write basically what Morgan wrote. Outrage doesn't matter in the commercial world unless you're outraged enough to not buy it.
I get the feeling if everyone displayed some amazing restraint here and didn't buy it, the prices'd probably soon come down.
Posted by: David Harrison | July 8, 2008 10:58 PM
But, but but.... I waaaaant a new iphone! (to paraphrase the famous song: it's my blog, I can whinge if I want to)
Posted by: Richard MacManus
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July 9, 2008 7:57 PM
Everyone wants to pull down the top! It's not easy being number one! Everyone wants to complain about the best. It's a great phone! Nothing is perfect in this world. Nothing. So I think you should consolidate your wins. There's way more Pro's to the Iphone then Cons. Or no one would buy it. What other Cell Phone can make people wrap around stores for hours just to get one..hmmmm???? none... Rock on Iphone.. Show some love! Gzeesh Haters...
Posted by: Dshot | July 9, 2008 9:25 PM