Give me some mobile phone competition!

It's an exciting time for mobile phone users in New Zealand. First we have the launch of Telecom's new XT Network at the end of the month, and then a little further down the line (in August) newcomer 2degrees launches.

There's a real hope that these networks will introduce a degree of competition to the mobile market in New Zealand that just isn't there at the moment. That could mean lower prices for the consumer, and hopefully lead to some great deals.

Whether this happens, or not, we'll know in a few months - but if you're in any doubt as to how much extra we pay in this country for mobile phones let me give you a quick comparison.

In the UK there are a large number of companies offering mobile phone deals. Right from almost the very beginning of the mobile phone industry you've been able to pick up a top-of-the-range mobile phone free in the UK as part of signing up for a contract.

However in the four-and-a-half years since I left the UK the stakes have got even higher. More companies are offering cheaper deals and more incentives to sign up with them.

A cursory glance at the Mobiles.co.uk website reveals not only can you get a free mobile, depending on your requirements you can also land a free PS3, a bunch of cash back or even a laptop.

I chose a mobile at random - in this case the Nokia N95 and calculated the cost over the length of a 24-month contract.

In the UK I could pick up an 8GB Nokia N95 on a plan offering 600 free minutes per month to any network as well as unlimited texting. This will set me back GBP25 per month.

As part of the deal I also only pay half-price for the first nine months of the contract.

Over two years this will set me back GBP487.50, or around $1225 by today's exchange rate.

In New Zealand I'll pay $999 for a 1GB Nokia N95, although I can knock $270 off the price if I sign up for a large monthly plan.

In this example I can pay $109.95 per month for 250 anytime minutes and 600 texts.

So on a far inferior plan to that available in the UK, and with a mobile phone that has significantly less memory, I could spend a grand total of $3345 over a two-year contract.

That's a difference of $2120 between the UK and New Zealand, and even then isn't totally fair on the UK as their plan is significantly better.

And I don't believe this is out of the ordinary. Spend a few minutes on the UK website and then browse our offerings and you'll see it's a pretty sad state of affairs.

Hopefully now you can see why so many people are excited about the prospect of real competition in this country.

Let's hope competition between the networks can deliver some of that mobile phone price goodness in Aotearoa!