Why are NZ business's being ripped off by Telcos?

By Steve Biddle, in , posted: 6-May-2007 19:57

With all the discussions lately in regards to mobile pricing in NZ and the claims by numerous industry commentators and MP's that we're paying far too much in NZ to use a mobile phone it struck me as surprising that while we seem obsessed by the pricing of mobile calls and termination rates for landline to mobile calls nobody seems to be concerned about landline call prices as a whole.

TelstraClear have just launched a new Business product into the marketplace called BizLine which gives you the option of "flat rate" calling available on two of their plans.

These rates represent significant discounts over what many small to medium sized business users may already be paying. Why however should business users be paying such a huge premium compared to residential users?

Slingshot offers residential line rental for $42.95 per month and a $19.95 monthly charge on top of that gives you unlimited calling anywhere in New Zealand or Australia.

Telecom offers residential line rental for  $43.60 per month and a $25 monthly charge gives you Talk It Up Downunder which gives 6000 minutes per month to New Zealand or Australia.

ihug offers residential line rental for $41.00 per month and a $20 monthly charge gives you talk2 which offers unlimited calling anywhere in NZ or you can pay an extra $5 ($25 total) for talk2-nz+aus which gives unlimited calling to New Zealand or Australia.

It's obvious if you're a residential customer you're getting all the deals while anybody running a business (including those with a home business) are being ripped off for receiving exactly the same service.

Should business users be paying similair rates to home users for receiving exactly the same service? Why are business users not complaing about the high rates they are paying? Are business people making so much money they simply don't care about being ripped off? Why are TUANZ not raising this issue? Ernie Newman seems to love being in the media splotlight, I'm sure he could get some distance with this.

The move towards VoIP is going to seriously hurt telco's who being that price gouging is a perfectly acceptible business practice. Gone will be the days of paying inflated prices for line rental and calling. That can only be good for the economy.

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sbiddle's profile

Steve Biddle
New Zealand

I'm an engineer who loves building solutions to solve problems. I'll also a co-founder of the TravelTalk.nz travel site. 

I also love sharing my views and analysis of the tech world on this blog, along with the odd story about aviation and the travel industry.

My interests and skillset include:

*VoIP (Voice over IP). I work with various brands of hardware and PBX's on a daily basis
  -Asterisk (incl PiaF, FreePBX, Elastix)

  -xDSL deployments

*Structured cabling
  -Home/office cabling
  -Phone & Data

*Computer networking
  -Mikrotik hardware
  -WAN/LAN solutions

*Wireless solutions
  -Motel/Hotel hotspot deployments
  -Outdoor wireless deployments, both small and large scale
  -Temporary wireless deployments
*CCTV solutions
  -Analogue and IP

I'm an #avgeek who loves to travel the world (preferably in seat 1A) and stay in nice hotels.

+My views do no represent my employer. I'm sure they'll be happy to give their own if you ask them.

You can contact me here or by email at stevenbiddle@gmail.com