Vodafone Aust bets on pre-paid offers

By Iain Ferguson
08 September 2003 05:20 PM
Tags: australia, mobile, vodafone, red, iain, ferguson, pre-paid, sim
Australia's number three telecommunications player, Vodafone, is placing its faith in pre-paid mobile offers -- giving customers the option of a set number of free text messages or discounted call rates -- to boost its consumer business.

Claiming the company saw the local mobile market as "still focused on handset and price," Vodafone director Ian Scherger told ZDNet Australia the new offers targeted the fact not enough attention was being paid by telecommunications players to the "actual value the customer is getting".

Under the 'Red Sim' offers -- presently only available on pre-paid mobiles -- customers can opt for recharge options ranging from AU$20 to AU$200. Each recharge for AU$30 or more allows customers to select either a number of free text messages or discounted call rates. The number of free text messages rises and the call rates decline the more the customer spends. All but the lowest recharge option also allow the customer to call other Vodafone users for lower rates for a limited number of minutes per recharge period.

The offers are, at this stage, available until 1 March 2004.

The launch is being backed by an extensive marketing campaign, including print, television and outdoor advertising.

The offers, Scherger said, represented part of the final stage of the carrier's plans to build its business -- the first two, reducing capital expenditure by 70 percent and operational expenditure by 30 percent, already having been achieved.

The telecommunications company presently has 18 percent of the 14.5 million mobile market here and is targeting what Scherger describes as "a significant increase". He declined to announce a specific figure.

The launch comes as Vodafone attempts to finalise a partnering strategy to deliver third-generation mobile services by 2005.

Grahame Maher, Vodafone Australia's managing director, has told ZDNet Australia negotiations to finalise its strategy would need to be completed by October or November at the latest to allow the company to meet that deadline.

The carrier also plans to bring out to Australia over the next six months a service designed to compete with PABX-based corporate networks by providing workers with mobile handsets through which they can secure voice, e-mail and Web access.

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