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2 Degrees holding back on concept stores

2 Degrees holding back on concept stores

Mobile entrant Two Degrees announced its retail partners and pricing plans today but few details of its planned dealer network.

At the launch in Dick Smith's new retail store on Auckland's Queen Street, CEO Eric Hertz said it chose to partner with retailers in order to get to people quickly rather than open stores straight away.

“We’ve focused on Dick Smith as a technology partner and got all of the grocery chains covered in terms of Foodstuffs, Progressive Enterprises, oil chains [BP and Mobil] and dairies.”

Two Degrees is also working with Warehouse Stationery. In total the company’s products will be available in over 6000 outlets. Retailers will be offering dealer care to customers on a 24 hour service number.

2 Degrees' marketing manager Larrie Moore (left) and CEO Eric Hertz at today's launch, held at the new Dick Smith store in Auckland's downtown

Chief financial officer Bill McCabe says the concept stores are coming but he would not give a date.

“We’ve built a network in a year but to build a network of retail shops in the timeframe that we’ve set is an immense challenge. It’s on the roadmap but when we’re doing it, I’m not telling you.”

McCabe says the concept stores will need to be different to the offerings of Telecom and Vodafone.

“In this market there has been a me too attitude. We think innovation and competition at the pricing level and store level has to be different.”

Two Degrees is offering 44 cent a minute calls to 21 countries and 144 cents to the rest. The same split applies to its 9 cents a text rate, with that moving to 20 cents outside the 21 country basket.

Voicemail calls cost 20 cents each. Data is available at 50 cents per MB. Top speed now is 7Mbit per second but, as with Vodafone and Telecom's new XT network, can be boosted to 21Mbit/s.

Business users looking for post-paid plans will have to wait.


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