Geekzone: technology news, blogs, forums
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.

12 posts


#37684 17-Jul-2009 11:12
Send private message

Maybe I'm being a bit cynical, but don't high termination rates work in the Govt's favour by giving them extra revenue through increased profits and therefore increased tax revenue?  It's not in the governments interest to regulate these down at a time when they are expecting serious budget deficits.

All of this comes at the cost of the consumer.  If they were honest about it, the termination rates would be dropped and we would pay higher taxes (same could be said of power prices, but that is another story/forum).

Does anyone else see the twisted logic in this, or am I just being cynical?

Create new topic
6434 posts

Uber Geek

  #236416 17-Jul-2009 11:39
Send private message

how do you suppose higher termination rates increase profits?

My understanding of how termination rates work (and I could be wrong of course - feel free to correct me if I am) is that it is a transfer between different carriers. i.e Telecom pays voda for each call from an Xt phone to an vodafone phone, and vice versa.

That being the case, doesn't that mean that every single MTR payment is simply transferring profit from one company to another and as such is a zero sum game for the industry as a whole in terms of profit (and therefore tax).

i.e. Any increase in profit from carrier A as a result of MTR receipts is a decrease in profit of the same amount for the carrier who made the MTR payment?

Is this correct?

12 posts


  #236419 17-Jul-2009 11:52
Send private message

Sure, but the rates are used for an excuse for high prices accross the board. What are the real costs of calls and txts withina network?


2514 posts

Uber Geek
Inactive user

  #236420 17-Jul-2009 11:54
Send private message

not really, when it is caused by the consumer having to pay higher rates for the product/service. If the termination rates were lowered/raised but the price of the service was constant then you would indeed be correct as the end result would be turn over as apposed to profit.

6434 posts

Uber Geek

  #236434 17-Jul-2009 13:05
Send private message

tronco: Sure, but the rates are used for an excuse for high prices accross the board. What are the real costs of calls and txts withina network?

they are? That is what 2d claims, but I don't remember seeing anything from Voda (who are the net recievers in the current market) claiming that the reason they charge more for offnet calls is because of MTR.   Telecom used to charge more for offnet caling, but don't anymore, but when they did I dont rememer them saying that the reaosn was higher MTR pricing. 

It would seem a pretty feeble excuse IMO becuase they are the ones who lobby the govt to keep MTR higher.

600 posts

Ultimate Geek


  #236765 18-Jul-2009 21:46
Send private message

MTRs are reasons to prop up the prices of their very profitable ASP and call centre businesses. It isn't the reason for high mobile to mobile charges. That's purely because people link MTR to end cost, which is pure baloney.

The only thing it matters for is for non-symmetrical traffic:

1) Dial-up ISPs
3) Call Centers
4) Other ASPs (conference bridges/etc)

Right now, you need a connection to each mobile carrier to deliver SMS'. If MTR was 0 for an SMS, you wouldn't need to connect to each one - only the cheapest one.

So, obviously 2d wants to poach that business from Telecom/Vodafone. It's very profitable and the last point where the number of people on-net makes a difference.

Create new topic

Twitter and LinkedIn »

Follow us to receive Twitter updates when new discussions are posted in our forums:

Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:

Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:

News »

Chorus completes the build and commissioning of two new core Ethernet switches
Posted 8-Jul-2020 09:48

National Institute for Health Innovation develops treatment app for gambling
Posted 6-Jul-2020 16:25

Nokia 2.3 to be available in New Zealand
Posted 6-Jul-2020 12:30

Menulog change colours as parent company merges with Dutch food delivery service
Posted 2-Jul-2020 07:53

Techweek2020 goes digital to make it easier for Kiwis to connect and learn
Posted 2-Jul-2020 07:48

Catalyst Cloud launches new Solutions Hub to support their kiwi Partners and Customers
Posted 2-Jul-2020 07:44

Microsoft to help New Zealand job seekers acquire new digital skills needed for the COVID-19 economy
Posted 2-Jul-2020 07:41

Hewlett Packard Enterprise introduces new HPE GreenLake cloud services
Posted 24-Jun-2020 08:07

New cloud data protection services from Hewlett Packard Enterprise
Posted 24-Jun-2020 07:58

Hewlett Packard Enterprise unveils HPE Ezmeral, new software portfolio and brand
Posted 24-Jun-2020 07:10

Apple reveals new developer technologies to foster the next generation of apps
Posted 23-Jun-2020 15:30

Poly introduces solutions for Microsoft Teams Rooms
Posted 23-Jun-2020 15:14

Lenovo launches new ThinkPad P Series mobile workstations
Posted 23-Jun-2020 09:17

Lenovo brings Linux certification to ThinkPad and ThinkStation Workstation portfolio
Posted 23-Jun-2020 08:56

Apple introduces new features for iPhone iOS14 and iPadOS 14
Posted 23-Jun-2020 08:28

Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.

Support Geekzone »

Our community of supporters help make Geekzone possible. Click the button below to join them.

Support Geezone on PressPatron

Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.