I think what it boils down to is either:
1) NOR think that the cost of 15 or 5 minutes is too high therefore they need to reduce this further to minimize costs; or
2) NOR are comfortable in that the free sample given to customers at 2 minutes sufficiently entices them to become paying users.
In reality, I suspect it is probably a blend of both.
Ultimately NOR has to incur the cost of the free minutes given to new users as they will have to pay the network rates for the cost of the call. Perhaps they are concerned that the download rates at 15 or 5 minutes are too high and may cause some capital management issues down the line? Given the falling share price at the moment, a new issue would be pretty painful from a dilution perspective so I can imagine they would want to avoid this. We've seen over the last few updates that the cost of acquisition per customer is falling so I think that this is positive provided it doesn't have a materially detrimental affect on the download rates.
I have faith in management in that they've adopted the right approach but I'm very eager to see the revenue from Android at this update. We're almost at 14,000 reviews which would equate to nearly 1.4m downloads, hopefully enough to split out iOS and Android revenue streams to see if it has legs.
NOR Price at posting:
6.8¢ Sentiment: Buy Disclosure: Held
(20min delay)