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Home / New Zealand

Vodafone fee riles pre-pay clients

By Eloise Gibson
NZ Herald·
25 Jul, 2008 05:00 PM3 mins to read

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KEY POINTS:

Plans by Vodafone to charge for customer service phone calls have outraged some customers, with a consumer group saying the plan is "like using a sledgehammer to crack a nut".

From next Friday, Vodafone will charge pre-pay customers $1 to speak to a customer service representative in a
bid to shift a "hard core" of customers who refuse to use automated voice and internet service options.

Vodafone spokesman Paul Brislen said the charges would improve response times by deterring people from calling with simple queries, such as how to reset a ring tone.

The network plans to spend $30 million on self-service channels over the next three years.

However, comments on online chat forums this week showed many customers were concerned about the length of time it took to get a response from Vodafone using automated options.

Some customers on technology forums like PCWorld.co.nz and Geekzone.co.nz said they would switch companies in protest at the charge.

Consumer New Zealand chief executive Sue Chetwin questioned how serious the problem of time-wasting was, likening the plan to "using a sledgehammer to crack a nut". She said the charge was not a good look for Vodafone, particularly as it arrived so soon after controversy about the company's pricing of the new iPhone.

One high-profile customer expressing outrage at the charge was entertainer Gary McCormick. He said it would affect those customers least likely to make a fuss _ poorer customers and young people who were more likely than average to use pre-pay phones.

McCormick gave the Herald emails showing it had taken him three weeks to get a response using Vodafone's automated online help service. The response said his request had been forwarded to the correct department.

More than one month after his request, his query had not been resolved. But his phone had been barred from making calls and then reconnected due to a billing mistake related to his query.

Mr Brislen said the charge was a win for consumers because operators would be able to concentrate on getting responses to complex queries right the first time. Ninety-five per cent of customers already used the self-service options, he said.

Telecommunications Users' Association chief executive Ernie Newman said he was relaxed about the charge, provided it was administered sensibly.

"A lot of companies try to encourage people to deal with them through the most cost-effective channel. If it was $10 [a call] it would be a different matter."

Vodafone said customer service representatives would be able to waive the charge on a case-by-case basis.

Mr Brislen said although self-service options saved money in the long-run, the move was not an exercise in cost-cutting. There were no plans to charge customers with cellphone contracts for customer service calls.

Telecom spokesman Mark Watts said his firm did not charge for customer service calls and had no plans to do so.

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