Consumer NZ is supporting a “Drop the Rate Mate” mobile phone campaign because dropping termination rates will benefit all consumers.
The campaign supports a Commerce Commission draft recommendation that mobile termination rates are regulated. Currently to make a call from one mobile network to another costs 15c per minute and 10c per minute for texts. The commission wants that to come down to 7.2c for calls and 0.95c for texts, and to drop even further by 2015. In other words the commission is saying Kiwis are paying 10 times what they should be for texts.
As well as costing consumers, the termination rates also make it difficult for a new player to enter the market because nearly all of its calls at the beginning will be coming from either Telecom or Vodafone. The high termination rates also make it difficult for a new player to offer competitive rates.
Despite what Telecom and Vodafone say about lower termination rates costing consumers, this has not been the experience overseas. The commission says a reduction in mobile termination rates is likely to increase competition resulting in a reduction in retail prices and increased efficiencies. This will be a benefit to end-users.
More information
- For more on the campaign visit: www.droptheratemate.org.nz
- You can also text your support to 022 DRP IT M8
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