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Topic # 7651 1-May-2006 13:11
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It looks like Mauricio is a little slow today with the news! :-)

For those who haven't yet read the news the commerce commission has just announced it recommends regulation to cut mobile termination costs.

http://www.radionz.co.nz/news/latest/200605011112/2348bb62


It also looks like Telecom chief spin doctor Bruce Parkes is also very unhappy

"“Prices for customers have been coming down sharply – and there was
another big step in that direction last month with Telecom’s launch of
Freedom calling plans which allow virtually unlimited calling between
nominated fixed and mobile numbers for $10 a month.

“This recommendation would see the pointless extension of regulatory
powers into new areas.”

Mr Parkes said the move would impact the revenue of mobile phone providers
such as Telecom."


Get with it Bruce - on one hand you've just cut rates to a very very very low price with the $10 capped calling because regulation was inevitable and now you're saying the move that regulation will have an impact of the revenue of mobile providers. The regulated cost would have been substancially higher that what you are doing with $10 fixed rate calling therefore if the new freedom plans are sustainable then how could you possibly object to regulation?


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  Reply # 34387 1-May-2006 13:36
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sbiddle:

Get with it Bruce - on one hand you've just cut rates to a very very very low price with the $10 capped calling because regulation was inevitable and now you're saying the move that regulation will have an impact of the revenue of mobile providers. The regulated cost would have been substancially higher that what you are doing with $10 fixed rate calling therefore if the new freedom plans are sustainable then how could you possibly object to regulation?



Agreed!

Although Freedom plays the loyalty card, ie Telecom benefits more if the tolls made through such low rates are with them as it costs them less (meaning higher margin) to terminate the call as opposed to charging another carrier to terminate it.... if that makes sense.

Hence why Freedom is more profitable/favourable (read: the lesser cost) to Telecom than what lower termination rates accross the board even if they are higher in price per call than what Freedom would cost. It also provides the opportunity that it could lead to other add-on services.

Bring both on I say :)

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