How many people are in the US you have to compare apples with apples, If you like the US deals you will have to move there to take advantage of them. This is a very old subject on here and has been brought up many many times before.
Agree with Johnr - you can't compare. The economics are too different. Power and petrol are also cheaper in the US. So are cars and mortgage rates. The official cash rate in NZ is about 6.5% in the US it is closer to 1%.
The less income Telecom NZ and Vodafone get the less there will be to spend on new toys and then people will complain we are behind on technology like building new sites for coverage upgrading sites to 3G and beyond. its a horrible can of worms. No company will invest if there is no return and then we will have nothing thanks to the consumer who wanted it all for next to nothing.
I agree with you on volumes and economics. The mobile rate is normally determined by the two carriers interconnect agreement. We have artificial high termination rates between Telecom and Vodafone. commerce ministry is investigating the rates. You can visit and check it out
The best part is telecom has to pay the terination rates to Vodafone if you call from telecom network i.e. your phone line or 025 or 027 phones. Now there is no rate payable to vodafone when one calls 025 or 027 number from Telecom landline. but then also the landline to mobile rate charged is higher.
I guess there has to be a balance between cost and technology. even after so many years the national calls are expensive.. there is no technology investments done.. if ur not on right plan u pay as much as 30 cents to call national tolls.
Further on that - If Telecom made it cheaper for a landline to call 025/027 (and back the other way) because there is no termination passed through. Voda would complain about an unfair playing field and the market would be skewed in Telecom's favour.
If it were allowed (by law) then I am sure Telecom would do it.
But you have free landline local calling which other countries do not have. This is also free for 083xxx numbers that terminate to an ISP. Hence the reason why ISPs can offer '$9.95' unlimited dial up. A user can sit online 24 hours p/day. It is Telecom who had to invest (at their own cost) to increase capacity to do this.
US has free local calling.. i thing it is position of the carrier. Being eveolved from monoply environment telecom is slow in uptake of changes and compitition.
And that is the reason AAPT is not doing well in OZ as telecom is compitition to the local incumbent Telstra.
AAPT is doing the same thing in OZ as TelstraClear doing here..
We need to open our eyes and see overal picture and does not keep contstrained to local views. give an example around 2 years back when NZ dollar was rising against the USd our TV news were showing wow Now we can buy CHEAP international Holiday. And no one was thinking on the Apple growers who started feeling the tough compitition in international export market.
I guess now we are seeing more and more apple growers are closing their business.. we are export oriented economy and we have to keep our costs down to be succesful.
And I guess many woudl agree the communication cost is major part of the business...
Don't believe everything you read. The commerce commission decided that the Telecom CDMA network was not 3G (only 2G). This is the opposite of the ITU (International Telecommunications Union) which says it is 3G. I think I would believe the ITU - it has more credibility.
Also the Commerce Commission decided against 'local loop unbundling' where as most other similar countries have it. Who is right?