Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Mobile competition – better analysis shows problems remain

Media Release

21 May 2014

Mobile competition – better analysis shows problems remain

Today’s Commerce Commission announcement that mobile competition is not delivering for business and on account customers dispels the myth that New Zealand’s mobile market is competitive – and now it’s time to find out why.

2degrees Chief Executive Stewart Sherriff says the Annual Telecommunications Monitoring Report reveals there are three distinct mobile markets – prepay, on account and business – painting a distinctly different view of competition than previous reports.

“New Zealand’s highest spending mobile users deserved this. The Commission has acknowledged its past approach of looking at an operator’s share of total connections can be ‘misleading’. It’s now time for an in-depth look into switching barriers so we can see why customers who want to move, don’t,” says Mr Sherriff.

The Monitoring Report shows that competition in prepay has been vigorous, but on account or business customers have not switched providers.

Mr Sherriff says today’s findings show there is still work to be done to ensure long-term competition benefits all mobile users.

“2degrees has been actively competing for on account and business customers for more than two years, rolling out a national network and opening 49 retail stores. Despite this, we continue to hear from mobile users who are frustrated that they cannot take up a deal from 2degrees, even in situations where we can save them 20% or more on their monthly bill.”

Mr Sherriff says the reasons vary, but a common area of complaint is the finer detail of contract terms, which customers are confronted with when they call their provider to say they are leaving for 2degrees. In some cases even finding out those details can be a challenge.

“We look forward to the Commission taking the next step to look into these issues so the incredible value 2degrees has brought to prepay customers is extended to all mobile markets.”

“In the meantime, today’s report will be an important input for policymakers as they prepare for the upcoming Telecommunications Act Review,” he says.

ENDS


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fletcher Whittled: Fletcher Dumps Adamson In Face Of Dissatisfaction

Fletcher Building has taken the unusual step of dumping its chief executive, Mark Adamson, as the company slashed its full-year earnings guidance and flagged an impairment against Australian assets. More>>

ALSO:

No More Dog Docking: New Animal Welfare Regulations Progressed

“These 46 regulations include stock transport, farm husbandry, companion and working animals, pigs, layer hens and the way animals are accounted for in research, testing and teaching.” More>>

ALSO:

Employment: Most Kiwifruit Contractors Breaking Law

A Labour Inspectorate operation targeting the kiwifruit industry in Bay of Plenty has found the majority of labour hire contractors are breaching their obligations as employers. More>>

ALSO:

'Work Experience': Welfare Group Opposes The Warehouse Workfare

“This programme is about exploiting unemployed youth, not teaching them skills. The government are subsidising the Warehouse in the name of reducing benefit dependency,” says Vanessa Cole, spokesperson for Auckland Action Against Poverty. More>>

ALSO:

Internet Taxes: Labour To Target $600M In Unpaid Taxes From Multinationals

The Labour Party would target multinationals operating in New Zealand to ensure they don't avoid paying tax if it wins power and is targeting $600 million over three years through a "diverted profits tax," says leader Andrew Little. More>>

ALSO: