How can a new telco possibly compete in a market with two rich and successful incumbents, 4.7 million existing mobile connections and just 4 million potential customers?

2degrees should be a flop. It’s late to the market, offers largely undifferentiated technology and its pockets are less deep than either of its rivals. And yet, slowly but surely, the company is carving out a place for itself.

Fifteen months after launch, its two competitors are both losing customers and while it hasn’t updated the market on its own mobile connection numbers since February, we’re likely to hear a very good news story when they do.

Upping their offensive against the big two, 2degrees today launched five aggressive new ‘Pay Monthly’ plans costing between $29 and $129 per month.

While the price points are nothing new - the plan inclusions offer significantly improved value for on account customers, particularly data users.

The basic $29 a month plan includes 50mb of data (versus zero from Vodafone and Telecom at that price point), as well as 60 anytime minutes (160 for the first year if you sign up before 31 December) and 1000 text messages.

These are well crafted packages that recognise and cater to the growing market of New Zealand smartphone users - but the deal clincher for many will be the introduction of ‘carryover minutes’.

Carryover minutes

The ‘use it or lose it’ nature of included minutes in classic mobile price plans is an obvious pain point and long standing market opportunity. The new 2degrees plans allow customers to accrue unused calling time for up to one year.

In a possibly genius move (if the application currently under examination by IPONZ gets approved), 2degrees has registered ‘carryover minutes’ as a trademark, offering outstanding potential entertainment if and when their rivals choose to follow the 2degrees lead.

Playing to win

In 15 months, 2degrees looks to have carved themselves a substantial and growing slice of the NZ mobile market.

Outstanding marketing (see ‘it’s a worm’ below), smart pricing and a seemingly genuine commitment to identify and act on market demands suggest 2degrees has found its footing quicker and with less slip ups than most expected.

Increasingly they have the look of a company that’s playing to win and actually succeeding.

Plan details

Available with open terms (month-to-month contract) or with a 12- or 24-month commitment, the new range of Pay Monthly plans include bundled minutes and text to call any mobile or landline in New Zealand, a 3G data allotment, and Carryover MinutesTM, where any unused calling time accrues for up to one year.

If customers join one of the new Pay Monthly plans before 31 December they’ll also receive 2degrees’ Bonus100 offer, which gives them an extra 100 minutes every month for 12months to call any landline or mobile phone in New Zealand.

Out of bundle rates are 44 cents/minute for calls and 9 cents per text to anyone in New Zealand. Casual data costs 50 cents/MB anywhere in the country.