Maltese mobile operators use Euro to stiff customers with 7% price increase

By on January 9, 2008 in Services

Link: maltaStar.com

Texting ‘Happy New Year” to family and friends at the stroke of midnight on 1 January 2008 cost us more this year – through the ‘Fair’ conversion of tariffs to the new currency, Vodafone and Go hiked their prices by 7%.
 
The two leading mobile service providers used to charge Lm0.02c for every SMS sent. But as Malta converted to Euro last Tuesday, the two companies converted the price of a text message to €0.05. This figure was calculated in line with the national Euro changeover regulations, and technically, is not illegal.

Gahhh. It’s a rounding error, you see. That’s how they were able to do it. Ridiculous.

But then, I’m always the arse in the corner banging the ‘Texting is stupidly expensive’ drum whilst most consumers simply don’t care… it’s a smart update by the mobile operators that will no doubt look good on the balance sheets next quarter.

  • http://shkspr.mobi Terence Eden

    That’s always the problem with low valued goods – they are more affected by rounding in currency conversions.

    Vodafone Malta offers its pre-pay customers a 300 text bundle though – €6.99 or mL3. http://www.XE.com * lists the conversion as 3.00 MTL = 6.98812 EUR. Admittedly, this is a 0.02% rounding increase.
    http://www.vodafone.com.mt/page/priceplans_con_prepaidpriceplans_textplan.html

    However, the prepaid voice plans are about 0.02% cheaper per minute. What one hand giveth….
    http://www.vodafone.com.mt/page/priceplans_con_prepaidpriceplans.html

    As for texting being “stupidly expensive”… In terms of what is seems to be – 1KB of data – it is overpriced. When you factor in the storage, delivery, reporting QOS etc, it’s not *quite* as stupidly overpriced. When you look at the value it gives to the user – in this case 8 texts ~= 1 minute of talking – it’s an economic way to have a non-realtime conversation.

    People, in general, look at the value a service gives them rather than the cost to provide the service.

    Still, with the British bases in Malta accepting the Euro, it can’t be long until the UK adopts the Euro and we can finally relax when going abroad.

    Terence
    (Speaking for myself, not Vodafone etc)
    *Who have a reasonable mobile site – http://www.xe.com/wap/index.wml

  • Barry O’Connell

    Still compares favourably with UK texting rates

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