April 30, 2007

Vodafone welcomes decision on mobile termination rates

Vodafone welcomed today’s decision by the Minister of Economic Development, the Hon Trevor Mallard, not to accept the Commerce Commission’s recommendation to regulate termination rates for calls from landlines to mobile phones.

Vodafone’s commercial offer to bring down mobile termination rates voluntarily and pass through any savings it receives from other mobile operators reducing their rates now comes into full and immediate effect. This offer is reflected in a binding deed with the Crown.

“The government’s decision is great news for consumers because it means lower fixed-to-mobile prices much sooner than would have been the case under alternative regulatory proposals” said Russell Stanners, Chief Executive of Vodafone New Zealand.

“Under regulation, fixed operators would not have been obliged to pass through reductions in mobile termination rate to customers.

“We applaud the government’s common sense approach to achieving the best outcomes for consumers.

“This decision means that we will be able to boost investment in expanding mobile broadband coverage deeper into regional New Zealand,” said Mr Stanners.

ENDS