Mobile termination decision – it's safe to talk now

Thursday 5 May 2011, 3:07PM
By 2Degrees

The way New Zealanders use their mobile phone will change for good following this morning’s Commerce Commission decision on Mobile Termination Rates. 

2degrees Chief Executive Eric Hertz says reductions in the wholesale fees operators charge each other are fundamental to real price competition for consumers in the market.

“Three years after we raised the issue we now have pricing that allows 2degrees to do even more for New Zealanders and make mobile the life-­‐changing technology it should be.”

“Although 4.7 million Kiwis have a mobile, they use it on average less than once a day because of the cost.”

“Since our launch in August 2009 we’ve been changing that with large bundles of calling minutes and the best any-­‐network any-­‐time pricing, but the headwind of high termination rates from competitors has been strong.”

Mr Hertz says today’s decision is a smart one because it acknowledges the damage to competition from higher charges for calls and texts to other networks.

“The Commission is watching and is prepared to act. This should be the beginning of the end of deals which penalise consumers for calling or texting other networks,” he says.

2degrees had expected rate reductions, providing significant price reductions for its customers following Communications Minister Joyce’s decision to regulate in August last year.

“When we launched we halved the price of pre-­‐pay calling and texting. Earlier this year we made big cuts to calling costs for our post-­‐pay customers. There’s more to come, so people should think twice before signing a long term contract,” says Mr Hertz.

New Zealanders can be assured that mobile pricing is only headed one way: downward.”