Telecom moves to flat mobile roaming fee

Telco introduces $6 a day mobile roaming in Australia for post-pay smartphone customers

Telecom will offer flat-rate data roaming prices from Friday next week that will let customers with post-paid smartphones surf the web in Australia for $6 day.

A flat rate of $10 a day will apply in eight other countries, including Britain, the United States and China.

Elsewhere, Telecom will slash its post-paid data roaming pricing by between 83 per cent and 92 per cent but charges will remain based on the amount of data customers consume, rather than a flat rate.

Telecom said it would review its "specially reduced" $6 Australian flat rate in the middle of next year, implying that it might be a short-term offer.

Telecom will also slash its data roaming charges for pre-pay customers by up to 88 per cent - the rate falls from $4 per megabyte to $1 per megabyte in Australia - and cut the cost of making phone calls from its phones overseas by up to 45 per cent. The price of pre-pay mobile phone calls in Australia will fall from 89 cents per minute to 49c.

However, Vodafone still offers a cheaper casual rate to pre-pay customers roaming in Australia- at 50 cents a megabyte - while 2degrees' pricing is 95c.

Telecom chief executive Simon Moutter says offering flat-rate prices for internet access overseas carried some financial risks for the company, but he thought it a risk worth taking.

"Currently, around two-thirds of our business customers switch off their data when in Australia. A flat fee provides 'certainty' and puts an end to concerns about nasty bill shocks on your return home.

“We know data roaming charges have been a pain-point for customers. Personally, it was a real bugbear of mine as a customer before I joined Telecom earlier this year," he says.

The new rates also apply to people who surf the web overseas using Telecom data sticks connected to their laptops.

Xero founder Rod Drury endorsed Telecom's pricing strategy.

"Flat rate pricing takes the cost of connecting back to New Zealand and all over the world out of the equation – and that's just great for business," he says.

4 Comments

Anonymous

1

Good on Telecom for innovating in this area. Whilst $6 a day is not that great if your there for a month or whatever you would still be better with a local sim, its a bloody good option for shorter trips and smashes the eyewatering hotel rates of up to $40AUD a day and also is a good backstop in the case you need it. The biggest risk will be your phone accidentally connecting to the wrong non Telecom aligned network - then you could really get yourself in trouble. Im sure some will do this. But good on Telecom - Vodafone - your move?

Anonymous

2

What we want are telcos to stop charginf like wounded bulls for mobile data. I don't believe that it is that expensive to provision for data, any more than I believed Telecom's lies when it came to the charging bullshit they used when DSL services came onstream. With only two network poroviders, you can guarantee that they work together to set outrageiously high data pricing.

TGhis is just more bullshit from Telecom in a vain attempt to try to gloss over the mobile data charge rort we are subjected to.

Anonymous

3

While any price cuts are good, I suspect this only affects about 1% of the population.

Try cutting your local costs and see how the other 99% of us applaud you.

tomasi

4

this is great news! good to see that prices continue to come down, and now there is bill certainty!

well done telecom

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