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Labour: drop mobile rates now

Thursday, 5 May 2011, 12:18 pm
Press Release: New Zealand Labour Party


Clare
Curran

Spokesperson for Communications and IT


5 April 2011 MEDIA STATEMENT
Labour: drop mobile rates now

Labour today calls on New Zealand’s mobile phone carriers to immediately drop their retail prices on mobile termination rates for calls and texts which would help New Zealanders struggling to make ends meet, Labour’s communications and IT spokesperson Clare Curran says

“The major mobile carriers could demonstrate immediate commitment to a competitive market by dropping their retail prices now following the Commerce Commission’s decision on wholesale pricing today,” Clare Curran said.

“The Commerce Commission decision today on mobile termination rates – the cost of carrying a text or call on another network – reflects the importance of regulation in a fast changing and intensely competitive market.

“This investigation has taken too long, but will ultimately be good for competition and good for consumers, and most importantly shows why it’s important to have regulatory input. Because the industry will be healthier as a result and consumers will ultimately benefit.

“Unfortunately, in our newest network, ultrafast broadband, the involvement of the regulator, the Commerce Commission is being seriously curtailed by the government’s policy and its controversial new law. This won’t be good for competition and it won’t be good for New Zealand consumers.

“The Commerce Commission said today there will be significant reductions in the wholesale termination rates for mobile calls and text messages.

“Termination rates for calls will drop to less than 4 cents by 1 April 2012, with further reductions until 2014. Termination rates for text messages will drop to 0.06 cents from 6 May 2011.

“There are 4.7 million mobile subscribers in New Zealand.

“Mobile carriers could show leadership on this issue and help New Zealanders out at the same time by immediately dropping their rates to reflect the Commerce Commission’s decision. The industry has expected this decision, they will have budgeted for it and all carriers should act now to implement it,” Clare Curran said.

ENDS

 
 
 
 
 
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