By Simon Shepherd
Mobile phone charges look set to come down, following a Government decision to regulate cross-network calls.
The price companies charge each other could drop by up to 14 cents a call, but it's up to them to decide how much of that they pass on to consumers.
Phoning a friend on another network has always cost more, prepaid rates can reach 89 cents a minute.
Eighteen cents of that cost is what's called the Mobile Termination Rate (MTR).
“Besides Mexico, New Zealand is the only country that hasn't regulated MTRs,” says Sue Chetwin of Consumer NZ.
“Ours have been coming down but are still high.”
Currently networks charge each other about 18 cents to connect. In Australia its 6 cents a minute and dropping. In the UK it's 4 pence and heading to 1 p.
“Vodafone and Telecom had promised to bring them down, but now the Government is stepping in,” says Guy Hallwright, an analyst for Forsyth Barr.
Communications Minister Steven Joyce says 2 Degrees have been lobbying for regulation on MTRs since entering the market.
Eric Hertz, of 2 Degrees, says the company’s competitors are not happy.
“Vodafone and Telecom both say they're disappointed the Government wouldn’t accept an industry solution, which they claim would have delivered lower prices sooner,” he says.
The new regulated rate will set by the Commerce Commission next year.
It is previously recommended about 4 cents a minute, 14 cents less than the current price.
But it's up the telcos to decide whether they pass it on
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