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Even though we're supposedly a testing ground for telecoms technology, the
USA has had "push to talk" (PTT) cellphone services available for a couple
of years now -- and we haven't.
But, as they say, all good things come to those who wait, and both Vodafone
and Telecom have now announced their PTT services and pricing plans.
I hope the Commerce Commission come down like a tonne of bricks on Telecom
for labelling their service as "flat rate" -- which it isn't. It's a
"minimum commitment" plan, and that's a whole lot different.
For $10 a month you get up to five hours of button-time, which (at less than
four cents a minute) pretty good value and makes regular call rates of
almost 20 times that amount look grossly overpriced.
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Indeed, the extremely low cost of PTT services shows just how over-charged
we are when it comes to regular mobile calls.
Vodafone's pricing and charging metrics are disappointingly different.
Not only do they have a much higher monthly fee, but they are using each
button push as a billing counter. Given that the very nature of PTT
is more suited to staccato exchanges, Vodafone users may find themselves
using up their 500 pushes a whole lot faster than Telecom's customers
consume their five hours.
If PTT makes voice calls seem way-expensive, just look at what they do for
the price of SMS messaging.
Telecom's $10/month minimum commitment txt offer effectively becomes a very
expensive alternative to PTT.
Why are customers asked to pay $10 for what amounts to some 100Kbytes of
non-realtime data transfer in the form of SMS messages, when they get
five hours of voice-grade data-transfer for the same price with PTT?
Something smells here!
It's interesting to note that when I bought my first cellphone back in the 1980s,
the cost per voice-call minute was $0.67.
Now, almost 20 years later and despite the incredible improvements in technology
and massive reductions in the cost of toll calls, internet access, etc -- the
benchmark price for a mobile voice call has (in real, inflation adjusted terms)
actually *increased*!
And let's not even talk about inter-network pre-pay voice calls which are
around $1.50 per minute!
In the UK you can make mobile calls (including pre-paid) for as little as 3p
per minute. In the USA there are many calling plans that offer rates just as
low.
So why are we paying more now than we did in the 1980s?
These are questions that need to be answered.
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