Telecom was receiving plenty of praise around the
blogosphere yesterday after announcing it was slashing data
roaming charges for travellers using their smartphones and
other mobile devices overseas.
Telecom chief executive Simon Moutter said Telecom knew data
roaming charges were a pain-point for customers.
''Personally, it was a real bugbear of mine as a customer
before I joined Telecom earlier this year. A flat fee
provides certainty and puts an end to concerns about nasty
bill shocks on your return home."
The new pricing plans start from Friday, December 21.
A feature is a flat daily rate for data roaming by postpaid
customers across major travel markets.
Australia roaming would start at a reduced rate of $6 a day
with a review in the middle of next year. Customers would pay
$10 a day flat rate for data while travelling in the United
Kingdom, United States, Canada, China, Hong Kong, Macau,
Taiwan and Saudi Arabia. Telecom's fair use policy applied to
Data roaming charges would be slashed by 83% to 92% in other
markets, although other charges would continue to be on a
usage basis, Mr Moutter said.
The new postpaid pricing schedule also included new voice
call roaming rates featuring a 35% cut in per-minute rate for
He acknowledged there was an element of financial risk for
Telecom in the flat fee approach, but he believed it was a
risk worth taking.
''We've been negotiating hard on new wholesale deals with
overseas telcos that underpin our new pricing. At the same
time, we've had to make assumptions on how customers' data
use behaviour might change under the flat fee approach."
As an example, a customer who spent five days in the US and
consumed 86.6MB of data would have saved $325.50 on the $10
per day flat rate, an 87% saving.