Mobile Termination rates to be regulated, says Minister

Forums › ICT Policies and Regulation › Mobile Termination rates to be regulated, says Minister

1 | 2

NonprayingMantis

6434 posts

Uber Geek
+1 received by user: 1528

#364174 6-Aug-2010 12:16

joff_nz: I remember a MTR discussion about a year ago with some data cited in an article comparing MTRs and Retailr prices around the world but i have never been able to find it again. Does anybody know where it was or have a copy?

no idea, but you could try the comcom website, they have the submissions from the carriers there.
If the comparison is favourable to lowering MTR, then it's probably in the 2Degrees submission.
If there is no correlation then it is probably in either the Telecom or Vodafone submission.

webwat

2036 posts

Uber Geek
+1 received by user: 145

Trusted

#366220 11-Aug-2010 13:35

DrCheese: On an 89 cent per minute pre-pay rate, the MTR is tiny. I can't see people rejoicing in the streets about this. The effect will be more indirect in that new telecommunication entrants won't be sending as much cash in the wrong direction in the early stages of their operations.

David.

Exactly. MTR is about competition and barriers for new market entrants.

But perhaps the ComCom should also look at what prices are charged to retail customers that make calls to mobile from land lines, whether there is a case of monopoly pricing by landline providers, and whether Telecom/Vodafone ownership of mobile networks has resulted in landline customers being rorted.

Time to find a new industry!

ockel

2031 posts

Uber Geek
+1 received by user: 545

#366233 11-Aug-2010 14:01

webwat:
DrCheese: On an 89 cent per minute pre-pay rate, the MTR is tiny. I can't see people rejoicing in the streets about this. The effect will be more indirect in that new telecommunication entrants won't be sending as much cash in the wrong direction in the early stages of their operations.

David.

Exactly. MTR is about competition and barriers for new market entrants.

But perhaps the ComCom should also look at what prices are charged to retail customers that make calls to mobile from land lines, whether there is a case of monopoly pricing by landline providers, and whether Telecom/Vodafone ownership of mobile networks has resulted in landline customers being rorted.

ComCom doesnt have the legal scope to examine retail prices - in any of the areas that it focuses on. Its structured around promoting competition (or reducing barriers to competition or regulating where competition is deemed to be insufficient). The Act only allows regulation of wholesale prices with the view that if wholesale prices are reduced towards Long Run Incremental Cost (of a theoretically efficient operator) then that will result in the ability for competitors to either reduce retail prices (and earn normal profits) or allow the entry of new competitors that were previously unable to compete due to sub-normal profits.

Only the monthly landline access/calling price (as required by Telecom to provide to homes including 9.6kbps data) is regulated as a retail product.

To allow ComCom to look at retail prices would require an act of Parliament.
Interesting its very similar in Australia with the enshrined basket of products for retail as those only regulated. MTR rates are similarly regulated in Australia with the most recent reductions (they held them flat in 2009 for another 3 or 5 years) resulting in Telstra incresing retail tariffs - ie the concept of lowering MTR didnt flow through the retail tariffs.

Sixth Labour Government - "Vision without Execution is just Hallucination"

1 | 2