Vodafone ready for competition with new 35-day prepaid plan

 

– Millions of Australians could save hundreds of dollars on their phone bills each year by switching their prepay service to Vodafone –

10 May 2017 – Vodafone today announced it is giving prepaid customers a better deal by extending the billing cycle on the majority of its new recharges by 7 days,giving customers more time to use their inclusions.

Vodafone’s new prepaid plans – Talk Combo and Data Combo – now offer a 35-day expiry period on plans $40 and above. This means that customers recharging monthly will pay for their service 10 times a year compared to Telstra, Optus, Amaysim and Virgin Mobile customers who will recharge13 times a year on a 28-day expiry period.

Vodafone Consumer Business Unit Director Ben McIntosh said the introduction of a 35-day expiry period breaks ranks with rivals and offers prepaid consumers a fair go for their mobile service.

“Prepaid consumers have said they find 28-day expiry periods unfair – and we agree. Why should Prepaid consumers pay an extra month a year for their mobile phone service?” said Mr McIntosh.

“By extending the prepaid expiry period on many plans by a week, customers will have more time to use their inclusions and will be recharging less frequently annually, saving them money. 

“There’s no denying that 28-day plans have been a sore point in the industry.  We admit we have been part of the problem, and we want to lead the industry forward.” 

McIntosh predicts the combined “toxic” revenue of rivals from the creation of a ‘13^th’ month totals more than $216 million each year.*

“Competitors who care more about their shareholders than their customers will find it hard to give up this toxic revenue, but we know first-hand that profitability can follow if you do the right things by customers,” said Mr McIntosh.

“This is why I am encouraging the millions of Australians on prepaid plans to ask their provider why they have to pay for an additional month every year for the privilege of being a prepaid customer.

“They will more than likely say that it’s because everyone else is doing it, which is an excuse that no longer stands.”

In addition to generous data and international calling allowances, customers on Data Combo and Talk Combo plans will also enjoy unlimited calls and texts within Australia. Price points range from $30 – $60, with recharges over $40 offering an extended expiry period.

Pricing information

Sum calculated by total prepaid subscribers of Telstra, Optus, Amaysim and Virgin Mobile (7.2 million) multiplied by average industry revenue per user (ARPU) of $30 x 1 month.

VODAFONE’s OFFERING

·        Vodafone is shifting the norm in the Telco industry with a 35 day expiry period or 35day recharge window.

·        At the same time, Vodafone has also increase base line plan inclusions by doubling the data on its $40 plans (vs. its own $30 plans) and is offering 1000 international minutes to 15 countries on the $40 plan (lower than before entry price)

·        35 days mean more time to use the heaps of data a customer now gets

·        Any prepaid customer on a $40 plan with a 28day billing cycle pays $520 a year. With Vodafone, a prepaid customer on a $40 plan with a 35day billing cycle pays $400 a year. That’s $120 savings.