Minister recommends regulation - Vodafone's response

, posted: 4-Aug-2010 11:45

Vodafone is disappointed the Minister has decided to regulate rather than to accept an industry solution that would have delivered lower mobile termination rates sooner.

Tom Chignell, GM  of Corporate Affairs, says the New Zealand mobile telecommunications market is dynamic and active, and to further regulate at this point would only interfere in what is proving to be the most competitive part of the overall telco sector.

Vodafone sees no evidence that there will be material benefits to mobile or fixed-line customers from regulating mobile termination rates. However, Vodafone will continue to work with the Commission through the process for the months to come.

Other related posts:
Of termination rates and regulatory holidays
Vodafone's response to the Commerce Commission's report
Here we go again

Comment by Chris, on 4-Aug-2010 12:16

Soon we will be paying for incoming calls and texts, I don't see how the government thinks that the consumers will be better off.

Comment by Chris, on 4-Aug-2010 12:24

I thought that reduced prices results from increased competition not regulation, And faster reduced prices through competition, this is bull shit.

Comment by Minaithnir2005, on 4-Aug-2010 15:00

No benefit to regulation?

For those believing that see this page and see the real facts.

Comment by hellonearthisman, on 4-Aug-2010 15:09

The industry solution wasn't cutting it, nice to see the government working for the people.

Author's note by jointhedebate, on 4-Aug-2010 15:19

Hi Chris, hopefully we can avoid that.

Hi Drop the Rate guy, do you have anything to say or are you just trolling?

@Hellonearth... the industry solution has delivered three network operators and ten MVNOs in the past two years along with reducing MTRs and savings being passed on to customers... not sure quite what more is wanted but no doubt we'll learn in the coming months.

My question is, will it make any difference at all to your phone bill? The short answer is probably not.

Comment by Chris, on 4-Aug-2010 16:43

@Minaithnir2005 The drop the rate page you are looking at is fabricated bull shit by Two Degrees Mobile Limited. They put they made up that bull shit site.

Comment by langi27, on 4-Aug-2010 16:43

Surely now the MTR will be brought in line with the actual cost of termination, not a pie in a sky number that VF and TNZ dream up.

I'm am glad the Minister is making this decesion, then at least we know its being managed by a non commercial group.

Author's note by jointhedebate, on 4-Aug-2010 17:16

@langi27, that's great. So now the rate will be set by govt instead of the industry.
What benefit does that bring the consumer? What will you gain from it? Nothing at all I'd say - prices might fall but more likely it'll be absorbed as margin increase. In Australia this is exactly what Telstra did to the tune of A$900m over five years.

Not sure any of this has been or will be worthwile to the customer.

Comment by Dratsab, on 4-Aug-2010 20:57

We've already seen one company testing the "sms spam" waters recently.  I certainly hope we don't see more of this when mobile termination rates drop to an acceptable level for the spam industry.

Minaithnir2005 does indeed appear to be a troll.  Two good blogs for a reality check on the 2 Degrees FUD:

For me, the real question is: are 2 Degrees (via the Commerce Commission) forcing us towards a bill and keep model, where we will eventually end up paying to receive sms messages?

I have absolutely no affiliation to any telecommunications company other than being a customer of one.  I'm also not dumb enough to think zeroing MTRs will bring a noticeable retail benefit to the consumer.

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Paul Brislen
New Zealand

You’ll have heard about mobile termination rates and how the Commerce Commission is investigating whether or not to regulate them. But what is a mobile termination rate, how does it work and why is it so important?

In this blog, we’ll try to answer your questions, tell you a bit about what we think and keep you up to date with the Commerce Commission and its process.

Recent comments

jointhedebate on Of termination rates and regulatory holidays: @StevenON, it's not MTR that introduces on-net/off-net pricing - it's marketing....

jjero on Of termination rates and regulatory holidays: You quote the amount of people in the public that think there won't be a substan...

grant_k on Of termination rates and regulatory holidays: This spectacle of Vodafone crying over spilt milk makes me about ready to puke.....

SteveON on Of termination rates and regulatory holidays: I spent a little time looking @ VF Ireland and am very surprised at their lack o...

jointhedebate on Of termination rates and regulatory holidays: @langi27 you're not required to read it - this is a place where we wanted to tal...

langi27 on Of termination rates and regulatory holidays: I don't understand why you continue to try to convince the public that your stil...

jointhedebate on Of termination rates and regulatory holidays: @rewa, that's a different kind of termination rate. You pay an early termination...

ockel on Of termination rates and regulatory holidays: @dannywii - the US is the biggest smartphone market in the world (by share - see...

rewa hard on Of termination rates and regulatory holidays: I agree with dannywii and I have had a number of corporate accounts with Vodafon...

jointhedebate on Of termination rates and regulatory holidays: In order:@myndlyz We have 49c/minute calling and we also offer $6/month call and...

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