Lobby group wants regulation on cell phone market

Tue, 11 Aug 2009 12:00a.m.

By Dan Parker

A coalition of lobby groups backed by 2 Degrees, the latest entrant in the cell phone market, has been formed to try and convince the Government to regulate prices.

The issue of regulation is currently being reviewed by the Commerce Commission and both Vodafone and Telecom are in the new group’s sights.

The group says Telecom and Vodafone run a lucrative duopoly.

“Everybody is contributing something to this,” says 2 Degrees CEO Eric Hertz.

“While it’s true that we might be able to contribute more, it doesn’t mean there isn’t an equal level or greater level of commitment to this. I think taking that number out in isolation may distort the fundamental principals that are behind this.”

What is really behind the campaign is the move towards Government regulation. The Commerce Commission has already released a draft suggestion to that effect, but a final recommendation will not be made to the telecommunications minister Stephen Joyce until the end of the year.

If that happens, mobile termination rates will be lowered – meaning it could be significantly cheaper to call and text rival networks.

The Telecommunications Association says customers are paying far too much, and with regulation they could save around $200 a year.

“We are well acquainted with what is going on internationally and it’s just not sustainable,” says Ernie TUANZ Chief Executive Ernie Newman.

“New Zealand has to come into line.”

The group’s slogan is ‘Drop the rate, mate’.

Telecom says its XT network is proof there is no need for regulation. But others disagree, and ‘drop the rate, mate’ is cheekily directed squarely at the telecommunications minister.

The group say they are set up to counteract any influence Telecom and Vodafone can assert on the process.

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