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# 38863 5-Aug-2009 15:34
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http://www.nbr.co.nz/article/revealed-vodafone-s-secret-deal-with-2degrees-107030

[EDIT]  Quotes from article removed



Interesting (particularly that last sentence).
   
Thoughts?



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  # 243061 5-Aug-2009 15:38
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EDIT: (references to article removed)

EDIT:  (quote from article removed)

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  # 243067 5-Aug-2009 15:48
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First - doesn't take a rocket scientist to work out that Vf has leaked the details - in one way shape or form. It serves their interests to do so, especially now that 2degrees has launched.

Second - I would imagine there would be some sort of market penetration threshold after which 2degrees reverts back to normal commercial standards for MTRs.

Third - there may not be an agreement with Telecom for a discount. 2degrees may have taken the view that Vf was easier fruit to pick off for a discount because they are a roaming partner of Vf. As far as Telecom goes, they may have judged they were competing largely in different segments of the market with Telecom's focus on the top-end corporate, high net-payer 3G data market vs what 2degrees has clearly chosen to target. Any assymetry with Telecom is absorbed by the discount with Vf, and we all now know there is plenty of margin in the call market anyway ...



 
 
 
 


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  # 243069 5-Aug-2009 15:51
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Still don't see why all the fuss over MTR's when the average calling rate is still 40-50c+ per minute, yet MTR is a low as 15c.




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  # 243072 5-Aug-2009 15:56
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coffeebaron: Still don't see why all the fuss over MTR's when the average calling rate is still 40-50c+ per minute, yet MTR is a low as 15c.


As low as (edit; removed) you mean?

Not to mention Callplus/Slingshot likely have even lower rates....

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  # 243077 5-Aug-2009 16:01
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simon14:As low as ... ?

I was more referring to the "general rate". There is just quite a large gap between MTR's and the "general" retail rate. Dropping the MTR's is not going to achieve much until this gap closes. Once the average calling price is more like 20-30c, then maybe reducing the MTR's would have more impact.




Chorus has spent $1.4 billion on making their xDSL broadband network faster and even more now as they are upgrading their rural Conklins. If your still stuck on ADSL or VDSL, why not spend $195 on a master filter install to make sure you are getting the most out of your connection?
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  # 243085 5-Aug-2009 16:10
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simon14: Wow, you leaked that info?


Vodafone agreed to charge asymmetrically to appease the previous Minister so that he didnt reopen MTR regulation.  The previous Minister was hell bent on getting a 3rd entrant in the market.
Vodafone are clearly p***ed that despite the secret deal the MTR issue was re-opened anyway.
Its a classic example of "gaming the regulator". 

As for questions about "passthrough" of lower MTR's to retail tariffs, the ACCC in Australia noted that despite lower MTR's in 2007 and 2008 Telstra has LIFTED tariffs on Fixed-to-Mobile calls.  The new undertakings or the regulation wont guarantee pass through.  The previous undertakings did.  And there are clear statements in the MTAS reports by the ComCom that show average retail mobile tariffs have declined over the last number of years. 

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  # 243091 5-Aug-2009 16:17
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From the Draft report on MTAS:
Para 316. Mobile termination rates were approx 28cpm in Jun04 and 16cpm in July08. The corresponding fall in headline residential FTM retail rates ranged from 6cpm to 31cpm.

Para 325: the industry average FTM price has fallen by 27% over 2004-2008, from 42.2cpm to 30.7cpm.


 
 
 
 


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  # 243121 5-Aug-2009 17:03
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coffeebaron: Still don't see why all the fuss over MTR's when the average calling rate is still 40-50c+ per minute, yet MTR is a low as 15c.


Reducing MTR is not about direct savings on the average call rate, it's about reducing the barrier to entry into the market which would result in more competition.

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  # 243137 5-Aug-2009 17:37
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the article has gone, just says Access denied

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  # 243148 5-Aug-2009 18:11
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It now states:

"UPDATE: The Commerce Commission has ordered NBR to take offline its story revealing the pricing terms of Vodafone's deal with newcomer 2degrees.

The commission claims NBR's exclusive report may be in breach of Section 100 of the Commerce Act.

NBR is seeking legal advice on whether to keep the story down or not."

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  # 243149 5-Aug-2009 18:11
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Looks like NBR will ringing their lawyers for leaking information.

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  # 243181 5-Aug-2009 18:59
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They have also added this to the UPDATE:

Until the expiry of the confidentiality order, any republication of the content of the NBR article also risks breaching the Commerce Act.

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  # 243187 5-Aug-2009 19:14
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Does that mean a mod should edit the first post?

How does this law work within a public forum like this?

Are we breaching anything just talking about it?

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  # 243192 5-Aug-2009 19:24
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Nah it's all good bro

:D

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  # 243199 5-Aug-2009 19:35
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If it were me then I would probably edit the first post just to be on the safe side.
Irrelevant anyway - much of the damage would have been done by now I would think.

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