Consumer NZ and the Commerce Commission encourage mobile providers to be more proactive in helping users choose the right plan.
For the third year running, Consumer has partnered with the Commerce Commission to assess how well New Zealand’s biggest mobile providers – Spark, One NZ and 2degrees – are empowering customers to find the best mobile plan.
The findings, for all three providers, are variable – with all of them capable of doing more.
“Mobile providers know a lot about their customers – from how much they talk on the phone to the amount of data they use each month and what this all costs,” says Telecommunications Commissioner, Tristan Gilbertson.
“At a minimum, consumers should be able to easily access this information to make informed choices.
“We’ve seen some positive changes this year, including a push by Spark towards making plan recommendations based on individual usage patterns, which seems likely to prompt a competitive response from other providers.
“We’d like to see right-planning, where providers suggest the best plan based on your usage patterns, become the norm,” says Mr Gilbertson.
Consumers are also being urged to review their mobile plans regularly to ensure they’re getting the best deal.
The state of the market: who’s leading the charge?
Consumer NZ devised a set of criteria for how well providers inform customers of what they use and spend on their mobile plans.
A Consumer tester used those criteria to award scores to the three providers’ mobile apps and annual email summaries.
Criteria include the quality of the information provided, how easy it is to access and understand, and whether customers are encouraged to consider other plans.
Spark
Overall score 80%: Mobile app: 85% | Annual summary: 73%
Consumer and the Commission’s assessment found Spark has made significant strides in improving transparency and offering personalised plan recommendations through its “Made for You Review” recommendation.
This AI-powered feature is a welcome addition, helping customers make more informed decisions about whether to stick with their current plan, or switch to one that better suits their needs.
However, the Made For You Review lacks detail on how much customers spend, and only considers six months’ worth of data, rather than a full year.
2degrees
Overall score 79%: Mobile app: 92% | Annual summary: 60%
2degrees continues to lead in app transparency, by showing what customers are using and spending on their contracts, but fails to provide personalised recommendations on available plans.
One NZ
Overall score 67%: Mobile app: 63% | Annual summary: 74%
One NZ also lags with limited data access in its app, over a 2-to-3-month timeframe, rather than for a full 12 months. It also only offers plan suggestions to customers with very low usage.
“Mobile providers should be taking more responsibility for ensuring their customers aren’t overpaying for plans they don’t need,” says Nick Gelling, Consumer product test writer.
“The data is already there – telcos just need to use it to help their customers make better decisions.”
Why it matters
The findings come at a time when only 8% of consumers switch mobile providers each year, and more than 60% have been with the same provider for 5 years or more.
Consumer’s research shows that many New Zealanders are unaware they could be getting better value elsewhere.
“We want to see telcos regularly using data to suggest the most appropriate plans, which could ultimately save consumers money.
“With the right tools, users can easily review their options, but providers should be helping them along the way,” says Gelling.
Consumer’s recommendations
Consumer encourages all mobile users to check their usage at least once a year and to shop around for a better deal.
The Commission also recommends consumers take the time to review their mobile plans annually.
“Mobile plans can be complicated, but if customers are empowered with the right information, they’ll be in a better position to make the best decision for their needs.
“We hope to see all telcos take the next step in offering greater transparency and right-planning,” says Mr Gilbertson.
About Consumer NZ and The Commerce Commission
Consumer NZ is an independent, non-profit organisation dedicated to championing and empowering consumers in Aotearoa. Consumer NZ has a reputation for being fair, impartial and providing comprehensive consumer information and advice.
Consider supporting Consumer today – join at consumer.org.nz
The Commerce Commission is New Zealand’s competition, consumer and regulatory agency. We play a crucial role in ensuring New Zealand’s markets are competitive, consumers are well informed and protected, and sectors with little or no competition are appropriately regulated.
The Commerce Commission’s vision is that New Zealanders are better off because markets work well and consumers and businesses are confident market participants. comcom.govt.nz/
