The battle between telco providers continues to heat up with Vodafone launching a new mobile phone service.
The company yesterday started its Supa Prepay service, with offers including BestMate, which provides unlimited calls, video calling and texting to one other Vodafone number for a fixed $6 a month.
IDC telecommunications analyst Chris Loh said the competitive stakes in the mobile market were rising sharply towards April when number portability would allow people to take their existing mobile number to a different provider.
"The post April environment will be one characterised by sharper products aimed at churning competitor's customers as well as retaining existing clients - both are important objectives in a saturated market."
The market would be characterised by the bundling of voice, internet and content offerings as well as fixed and mobile services, Loh said.
Last month Vodafone bought up phone and internet provider ihug for $41 million.
Vodafone's new BestMate offering would likely form a stepping stone to new mobile services based on local calling number ranges, Loh said.
A recent Commerce Commission ruling provided for the interconnection of local calls between Telecom's fixed and Vodafone's cellular networks.
This ruling could enable Vodafone customers to use their mobiles as their home phone within 2km of their house.
Shelley Watson, general manager of customer base marketing, said increasingly the company's offers, BestMate included, were aimed at moving communication off landlines and on to mobiles.
"Right at the heart of it is the fact that customers really do have a preference to call in some instances but we've just never had offers that let them both call and text with price certainty," Watson said.
Supa Prepay customers pay a flat base rate of 89c for all national calls capped at $2 for two hours to any 021 or 029 number at night and at weekends. Customers can also sign up for for 2000 texts to 021 and 029 numbers for $10 dollars a month.
