Droptherate - How about telling us the truth?

By Steve Biddle, in , posted: 11-Aug-2009 19:48

Today marked the launch of a campaign called droptherate - a campaign lead by 2degrees mobile to force the Government to drop mobile interconnection rates in New Zealand.

But what's wrong with our rates? A lot if you're to believe 2 degrees.

Now lets start pulling their graph apart.

How convenient that they forgot to mention that in the four countries that have zero that they do not operate under the CPP (Calling party Pays) business model. Oh, they also happened to forget that it's common to pay for incoming SMS messages and voice calls on some networks.. but I guess that just slipped their mind.

How conveient as well that the rates quoted on the site are actually for a 20 second call and make it look like the NZ figure which is based on a per minute rate is significantly higher?
To quote from EU figures from January 2009 that are in effect until new EU MTR rates take effect in early 2010.

Sweden €/min 0.393       $NZ 8.2c
France €/min 0.685         $NZ 14.3c
UK €/min 0.721               $NZ 15.1c
Germany €/min 0.818      $NZ 17.1c
Ireland €/min 0.1293 peak and 0.622 offpeak average = 0.956     $NZ 20.0c

NZ = approximately NZ$ 15c per minute.

2degrees has a discounted rate from the 15c - anybody who read the NBR last week will know what it is but for legal reasons I will not publish it here.

Rates in Ireland also differ between carriers - Vodafone and O2 have interconnect rates that are slightly less than that of Meteor who were the 3rd player to enter the market. MTR costs for Australia are also very hard to compare since they have flag falls and 30c billing blocks which can't be directly compared.

In some countries MTR rates are billed per minute and some are billed per second. Comparing a graph showing per second billing with a per minute call in New Zealand is blatently misleading.

MTR rates in New Zealand based on the current 15c per minute rate are very much in line with those in EU countries. A 3 minute call between 2 mobile numbers in Ireland would result in MTR costs of NZ$ 60c being paid between networks. Here in NZ approximately NZ$ 45c would be paid in interconnection costs.

NZ is NOT overcharging on MTR's like the graph shows.

What 2degrees also failed to mention (and what the NBR are no longer allowed to tell you) is that they are being billed per second for their interconnection with Vodafone. This means that their cost for a 20 second call to a Vodafone customer would be roughly equal with Sweden, the lowest CPP based operator on their graph.

Come on 2degrees - you're up to your old tricks again spinning us yet more rubbish. I guess a leopard never really does change it's spots.

Other related posts:
No, AT aren’t stealing your money. How Stuff confused a nation.
The perils of using Airbnb during big events
How to remotely control your heat pump from your phone for under NZ$25

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sbiddle's profile

Steve Biddle
New Zealand

I'm an engineer who loves building solutions to solve problems.

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