Mobile Termination Rates Media Conference

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freitasm

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#39211 11-Aug-2009 09:44

Just received this:

JOINT MEDIA CONFERENCE
2pm Tuesday 11 August

Airnet NZ Ltd, Consumer New Zealand, Federated Farmers of New Zealand, the Federation of Maori Authorities, the New Zealand Union of Students’ Associations, the Telecommunications Users Association of New Zealand, 2degrees Ltd and the Unite union will hold a joint media conference at 2pm, Tuesday 11 August in the Duxton 1 Room, at the Duxton Hotel, 170 Wakefield Street, Wellington.

The media conference is to launch a campaign in favour of the Commerce Commission’s draft recommendation on mobile termination rates which Telecom and Vodafone use to prevent genuine competition in the New Zealand telecommunications market. Background on the issue can be found at http://tvnz.co.nz/sunday-news/sunday-july-12-word-in-your-ear-2834643/video

Each organisation involved in the campaign will be represented at senior levels. The media conference will therefore also be the first opportunity for Wellington-based media to meet new 2degrees CEO Eric Hertz.

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Master Geek

#245182 11-Aug-2009 13:51

Heres a link to the campain website

www.droptheratemate.org.nz

sbiddle

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#245216 11-Aug-2009 14:55

Am I the only person who doesn't think MTR costs are the big issue here?

I reastically think MTR costs should be somewhere around the 10c per minute rate. SMS interconnection costs should probably in the 1-2c region. This is a significant drop for Vodafone's SMS interconnect but only a marginal drop from Telecom's. This would give us a reasonably competitive interconnect rate when benchmarked internationally.

The issue here is passthrough of cheaper MTRs. MTR rates have dropped from approximately 45c per minute in the mid 90's to around the 10c - 15c per minute rate we are seeing now. These reductions have not resulted in significant drops in airtime calling rates for many people. Many people are still paying excessive PSTN to mobile calling rates and mobile calling rates that are similair or higher than what they were 10 years ago.

Greedy mobile carriers are the biggest problem. MTRs have dropped and calls haven't. Why do these people think demanding lower MTRs will change anything?

Pressure needs to be but on mobile operators to explain why repay calls cost 89c per minute and do something about dropping this. Not pressuring the government to force MTRs lower.

adresdendoll

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Master Geek

#245220 11-Aug-2009 15:04

I personally feel that MTR's should be abolished altogether. I don't see them having any purpose other than a false justification to inflate prices. I commend 2degree for trying to raise public awareness on this issue, even if it is obviously in their best interest to do so.

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#245221 11-Aug-2009 15:08

Maybe I'm the only person who doesn't agree with this campaign but comments like this from the NBR really annoy me

"Drop the rates" spokesman Matthew Hooton said at the launch that "Telecom and Vodafone are ripping us off." Mr Hooton said the telcos' duopoly also distorted the landline market by inflating the cost of calls from landlines to mobiles, and hurt New Zealand's business productivity.

Exactly how is the VF/Telecom mobile "monopoly" causing landline to mobile costs to be inflated?

Retail rates are set to the PSTN network you are with. When mobiles were first launched here calling a mobile from a landline cost 71c per min. MTR costs were ~45c per minute.

Move on almost two decades and MTR costs are now in the 10c - 15c region but Telecom still charge 63c per minute to call a mobile if you are not on any of their calling plans.

The issue here is nothing to do with the MTR. Forcing the MTR lower will NOT reduce these costs. it hasn't in the past. Why should it now?

People have a choice when it comes to calling mobile phones, many people who are using VoIP providers or business customers on both Telecom, Vodafone and TelstraClear PSTN services are now paying less than 30c per minute per minute. Cheap calls are available if you look for them.

Somebody needs to be asking Telecom why the cost of interconnecting a call to a mobile has dropped from roughly 45c to 15c per minute why the retail cost has dropped from 71c to 63c.

Buttonmash

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#245222 11-Aug-2009 15:13

I would say the duopoly is inflating land line prices by making mobiles too expensive to be a viable alternative for most people.

Land lines are considerably less functional than a mobile. But with mobile prices so high landline rental prices can remain high as people still need to retain them.

Of course the fact that you couldn't get naked ADSL up until recently didn't help this either.

freitasm

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#245262 11-Aug-2009 16:32

Here is the official press release:

81% OF KIWIS SAY DROP THE RATE, MATE!

Eighty-one percent of Kiwis know they?re being ripped off by Telecom and Vodafone.

That's the key finding from an independent quantitative study by Curia Market Research Ltd, commissioned by Drop the Rate, Mate! and published today.

The same study shows 81% of us want Communications and Information Technology Minister Steven Joyce to accept the Commerce Commission?s draft recommendation to cut the mobile termination rates (MTRs) that are causing the rip off.

A spokesman for Drop the Rate, Mate!, Matthew Hooton, said the study also indicated New Zealanders were well informed about the Telecom and Vodafone rip off with 73% of Kiwis knowing that New Zealand mobile phone charges are higher than in similar countries. Only 3% disagreed with this proposition.

On MTRs specifically, 86% and 88% of New Zealanders respectively believed that it should cost about the same to call or text someone on a different mobile network as to call or text someone on their own network.

With Telecom and Vodafone likely to claim yet again that they are prepared to voluntarily lower MTRs over the next few years, the study also found that 55% of Kiwis don't trust companies to lower prices voluntarily.

Mr Hooton said Mr Joyce could take some comfort from the results of the study when he decides later in the year whether to accept the advice from his Commerce Commission to drop termination rates.

"Over the next few months, Mr Joyce is going to be the victim of a ferocious corporate lobbying campaign by Telecom and Vodafone, but he will be able to tell them that not only is the Commerce Commission telling him to drop the rate, but farmers, students, workers, Maori, consumers and 81% of New Zealanders are all telling him the same thing ? drop the rate, mate!" Mr Hooton said.

The launch of Drop the Rate, Mate! has been sponsored by Airnet, Consumer New Zealand, Federated Farmers, the Federation of Maori Authorities, the New Zealand Union of Students? Associations, the Telecommunications Users Association, 2degrees and the Unite union.

The Curia study had a sample size of 800 and a margin of error at the 95% confidence level of +/- 3.5%. The full Curia report is available on request or at http://curiablog.wordpress.com

freitasm

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#245279 11-Aug-2009 17:10

From Vodafone:

Vodafone welcomes 2degrees latest marketing initiative but would like to point out a few inaccuracies.

Lower termination rates do not result in lower retail prices as suggested. In fact, the Commerce Commission itself has pointed out that reducing termination rates will increase mobile prices by as much as $180 million over five years. The customers most affected will be those on prepay who don’t make many calls. http://tinyurl.com/md75ew (pg 17).

New Zealanders enjoy some of the best mobile pricing in the OECD – New Zealand is firmly in the top half of the OECD and just this week Vodafone has reduced the price of the country’s cheapest On Account plan from $18.95 to $16.95 per month.

Vodafone knows customers want value and we have worked to reduce voice costs by 55% and TXT prices by 75% over the past four years.

Vodafone customers benefit from great value products likes Family and BestMate. Half a million customers have a Best Mate and on average they make $375 worth of calls and TXTs for only $6 a month. This adds a whopping $950 million of additional value for New Zealanders each year.

Paul Brislen
External Communications Manager

Sharesies

Trade NZ and US shares and funds with Sharesies (affiliate link).

Behodar

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#245283 11-Aug-2009 17:15

If there are no MTRs, would the telcos potentially want to start a "pay to receive" system like in the US in order to make the money back? I'd rather pay a little more to place a call than be charged to receive them.

ajw

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#245302 11-Aug-2009 18:14

Aren't you sick and tired of hearing the same old tired argument from both Telecom and Vodafone to maintain the status quo. Please support and sign the petition against high mobile termination rates.

adresdendoll

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Master Geek

#245308 11-Aug-2009 18:25

The US system off charging to receive SMS is not justified either Behodar, Its more of a scam than MTR's. The receiving provider incurs additional NO COST, its just another way to milk the consumer.

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#245320 11-Aug-2009 18:56

ajw: Aren't you sick and tired of hearing the same old tired argument from both Telecom and Vodafone to maintain the status quo. Please support and sign the petition against high mobile termination rates.

So if I sign your the petition you'll guarantee that Telecom's retail POTS -> Mobile rate will drop from 63c per min?

Wholesale MTR costs have dropped just over 10c per min in the past 3 years. Retail prepay calling rates are unchanged.

Until people understand that the lack of passthrough, and not the actual MTR costs is the problem then we're going to make no progress when it comes to dropping calling prices in NZ.

ajw

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#245321 11-Aug-2009 18:59

sbiddle:
ajw: Aren't you sick and tired of hearing the same old tired argument from both Telecom and Vodafone to maintain the status quo. Please support and sign the petition against high mobile termination rates.

So if I sign your the petition you'll guarantee that Telecom's retail POTS -> Mobile rate will drop from 63c per min?

Wholesale MTR costs have dropped just over 10c per min in the past 3 years. Retail prepay calling rates are unchanged.

Until people understand that the lack of passthrough, and not the actual MTR costs is the problem then we're going to make no progress when it comes to dropping calling prices in NZ.

It's not my petition.

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#245325 11-Aug-2009 19:08

Can somebody please explain what the intended goal of the "drop the rate" campaign is. Dropped is not a clear word and has several meanings depending on the context and their website does not actually say what they are campaigning for.

Do they want MTR rates dropped (lowered) or dropped (discontinued)?

2degrees have pushed for the dumping of MTRs and CPP and a move to bill and keep - is this what they are really pushing for?

I notice in their graphic showing MTR costs of zero for the USA, Singapore, Hong Kong and Canada that they conveniently forget to mention you have to pay for inbound calls and TXT's in many cases..

friedCrumpet

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#245410 11-Aug-2009 22:57

As far as I can see, if 2degrees can lower MTRs then they can offer cheaper calls and not worry about an MTR inbalance being the new player. If they offer cheaper calling rates then obviously they will have a high number of calls outgoing from a low number of people (it takes time to gain market share). They will receive less calls back from other networks because of the high price of calling on those networks. Eventually as they gain more market share the other networks will be forced to drop prices and therefore calling will increase from those networks and the MTR inbalance for 2degrees will be less of a concern.

It's competition that's going to bring the prices down, 2degrees just wants to be as profitable as they can be and lowering the MTR will help them achieve this at this early stage.

cws82us

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#245444 12-Aug-2009 00:29

It's needs to be free no rates like this just free be easy for all of us

join Quic and get free sign up when you click my link https://account.quic.nz/refer/250676

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