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Click below to find interesting information from our October 2011a newsletter relating to:

Roaming
Travel
Mobile phones

Roaming 

Optus will soon tell you roaming is expensive

Optus announced a few weeks ago that it has spent two years developing a new service for its roaming customers. Within an hour of one of their travellers using roaming data, Optus will send a text message reminding them that they are roaming and how much the data roaming rates are. If they continue, they'll get an SMS every time they use 15MB of roaming data (or $300 worth at Optus' $20-per-MB rate).

Telstra has also just announced a way to monitor data usage more easily via its website.

Maybe we are just cynical, but the telco regulator was about to force this on the networks. We think it's really a way to help Optus and Telstra avoid customers complaining about the enormous growth in data roaming costs ("you were warned it was going to be expensive"). Given that Optus and Telstra have the highest per-kilobyte cost of Australia's major networks (and indulge in some dubious pricing policies), we'd rather they simply reduced the data rates instead of developing fancy warning systems.

Join Australia's smartest travellers and avoid high global roaming costs today!

Save more on data roaming, use our vSIM post-paid alternative.


Travel

Valuable frequent flyers

A highly-regarded airline such as Qantas values its frequent flyers. But there are 82 Qantas staff members that value them perhaps more than the remaining 32,400-odd. Those 82 staff work for the Frequent-Flyer program, which accounts for more (much more) value than the business of flying aircraft around.

Last year Qantas reported a big rise in overall profit before tax to $377m, of which two-thirds ($226m) was from the Frequent Flyer program.

Frequent-flyer programs are fantastic stand-alone businesses. They sell intangible things call "points" for cash, sometimes direct to us travellers when we want to top-up to get a particular flight, but more often to hotels, car-hire outfits, phone companies, banks, even supermarkets.

About 8% of these points are just wasted when they expire. The remainder are held for an average of two years (with the FF program holding the cash) before being redeemed. Redemption doesn't usually cost the airline much - popular flights that the airline expects to fill up will be blacked-out, so redemptions are usually otherwise-empty seats.


Mobile phones

Big things happening with smartphones

In a few year's time, we predict this will be labelled the decade of the smartphone. We've seen some interesting trends lately.

For starters, despite Apple's iPhone being the dominant handset sold in Australia, that is far from the case globally, where Android sales (the light brown part of the graph at right) are exploding - in fact without Android sales the handset market would be shrinking. Not that Apple is faltering - the light green area at the bottom shows healthy growth. App developers are following - Asymco predicts there will be twice as many Android apps available as iPhone apps within two years.

The eco-system has changed also. Revenue from apps has shifted dramatically from paid apps to freemium apps (where you get limited functionality for free and can pay to get the full app version) at around 2/3rds of revenue (freemium refers to a free app that you can upgrade for a fee). And the majority of app-store revenue is shifting to in-app purchases (payments for goods and services such as subscriptions from within the app) rather than payments for the app itself.

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