[WXC/VFX] How will WxC react to the MTR regulation?

Forums › One NZ (including Farmside) › [WXC/VFX] How will WxC react to the MTR regulation?

Bwooce

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#82777 5-May-2011 13:52

We're all expecting the first reaction from the Mobile Voice MTR regulation (~15c/m wholesale down to ~7.8c/m). The first phase comes into force tomorrow, assuming Voda don't get a High Court injunction (they're bleating, but would they go that far?).

So... WxC...are you going to lead the way? Somewhere between 15-20c would be a good start :-)

sbiddle

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#465901 5-May-2011 18:58

I expect we'll see massive cuts from the VoIP providers.

Anybody still paying 63c per minute on Telecom should be asking some hard questions about their choice of telco.

grant_k

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#465915 5-May-2011 19:12

Anyone who is looking for a reduction in calling rates, shouldn't start with the mobile operators. For them, the slashing of MTRs is a double-edged sword -- they pay less to send calls to another network, but they receive less from incoming calls which are terminated on their network.

The area of the market where this should have the biggest impact is with Fixed-to-Mobile calls. Again, don't expect Telecom or Vodafone to lead the way, as they will suffer an immediate revenue hit from today's announcement. Starting tomorrow, the regulated MTR rate will slash Vodafone's revenue by around 10c per minute, and Telecom's by about 8c per minute. Therefore, they are unlikely to lead the charge towards lower Fixed-to-Mobile calling rates.

Rather, look to 3rd parties like Telstra Clear, Slingshot, WxC and Compass who have the lion's share of the toll bypass market. And especially, look to the VoIP operators such as WxC and Slingshot to lead the way in Fixed-to-Mobile calling rate reductions, much as they have lead the way with National Toll prices.

Waiting with baited breath...

Niel

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#465936 5-May-2011 19:52

My recollection (of being on here for a few years) is that XNet wanted this so they could offer better calling rates. I'd expect a positive reaction from them. They should not see much difference themselves, if the rate drops both ways then it cancels out and the customer wins.

You can never have enough Volvos!