By JOSIE CLARKE consumer reporter
The price of cellphones and call plans are dropping as competition increases and companies vie to tempt the lucrative teen market.
Telecommunications companies agree that "lifestylers" - teens and families - make up the fastest-growing mobile market. They love prepay, text messaging and free minutes.
According to Vodafone,
more than 39 per cent of New Zealanders own a mobile, compared with 17 per cent in 1998.
A teenager who makes about 30 minutes of calls a month, mainly in the evenings and weekends, can run a prepay mobile for $22 a month.
Both Telecom and Vodafone offer off-peak prepay rates of 49c a minute.
Vodafone spokeswoman Val Hayes said prepay was the company's fastest-growing market. "There are a lot of teenagers using prepay and they love text messaging. "
As deals dropped to an extreme low, mobile users picked up a free phone and free minutes in an April offer customers "cleaned out" within four days, she said.
Users were also being offered additional free time.
Telecom spokesman Andre May said research showed free minutes helped people to feel comfortable about using a mobile.
Many new phones had a longer battery life that suited those who left home for the weekends and were away from a charger.
"Five years ago they were used principally as a business tool.
"A lot of customers start on prepay because they're not sure how they're going to use a phone. In many cases we encourage them to move to a contracted plan where they get free minutes, which is often more cost-effective on a permanent basis than going prepaid."
Businesses' mobile requirements were also changing, with many companies opting for tailor-made call plans for individual employees.
