Kiwi Mobile tackles NZD $400 million in wasted mobile data

Research has revealed that New Zealanders are losing approximately NZD $400 million annually on unused mobile data. Kiwi Mobile, a new competitor in the mobile market, aims to address this issue with the launch of its Endless mobile plan, which charges users only for the data they actually consume.

A study identifies that customers on postpaid plans have an average of 6.7GB of unused mobile data each month, leading to an estimated 72.4 million gigabytes of wasted data every year. More than half, about 59%, end up paying for data they do not need. Consequently, 68% of customers express a desire for more flexible mobile plans.

Kiwi Mobile's Chief Executive, Luke Blincoe, stated, "Kiwi Mobile’s purpose is to make things better for Kiwis." He added, "We’ve made things flexible—you can be confident you’ll never run out of data while only paying for data as you need it. No more being ripped off by paying for unused data. It’s pretty cool and we think Kiwis are going to love it."

Kiwi Mobile's Choice plan starts at NZD $1.30 per day for 5GB of high-speed data. When the customer's allocated high-speed data is exhausted, they can continue using data at reduced speeds or opt to increase their daily rate to access another tier of high-speed data. The plan features five tiers, allowing a maximum of 100GB of high-speed data each month.

Blincoe argued that traditional pay-monthly mobile plans from established New Zealand telecom operators compel customers to pay for more data than necessary. Even with rollover plans, users have to pay for data in advance, which may expire before use. "We’ve estimated inflexible data thresholds are costing Kiwis on postpaid plans upwards of NZD $400 million annually in wasted data," he said. "Our Choice plan will start pulling that number way down."

Kiwi Mobile intends to make mobile data pricing more transparent, aligning with the Commerce Commission’s guidelines for telecommunications providers. These guidelines urge operators to clarify their pricing and coverage so consumers can make more informed decisions.

One notable feature of Kiwi Mobile's Choice plan is its transparency and lack of hidden fees. For example, a customer on a traditional 15GB plan paying NZD $65 per month would only pay NZD $44 for 9GB on Kiwi Mobile. As Blincoe noted, “We’re not keen on the sneaky notice periods some of the other guys are into.”

Additionally, Kiwi Mobile offers a three-month free trial period, allowing customers to test the service without financial commitment. Customers can pay their bills weekly, fortnightly or monthly, and are free to leave the plan without penalty at any time.

The plan includes unlimited calls and texts to New Zealand and Australian numbers, as well as free hotspotting. Customers can also add up to four additional individuals to their plan, with discounts applied for multiple connections. Each user retains control over their own data tier, eliminating the need for all users to share a data cap.

Kiwi Mobile benefits from the infrastructure of the 2degrees mobile network, which covers 98.5% of populated areas in New Zealand. Established by Electric Kiwi, a respected power and broadband service provider, Kiwi Mobile aims to bring the same level of customer service efficiency to the mobile sector.

Blincoe concluded, “We intend to really bring the challenge to the big guys, and our goal is that Kiwis are the benefactors of that.”