The Emperor has no clothes

Media Release
30 September 2009

The Emperor has no clothes

Vodafone welcomes the Ministry of Economic Development’s Telecommunications Service Obligation discussion document, particularly where it points out that the “commercially non-viable customers” don’t actually exist.

Vodafone recently wrote to Telecom and the Commerce Commission asking for a list of so-called “commercially non-viable customers” (CNVCs) and was told that no such list exists.

Despite their lack of existence, these customers cost Vodafone $18 million a year and yet apparently only need dial-up internet speeds.

Vodafone chief executive Russell Stanners says the time for reform of the TSO is upon us.

“The TSO regulation was introduced with the best intentions but has become a millstone around the neck of the industry.

“We’re told there are 58,000 customers – five per cent of Telecom’s fixed line base - who aren’t commercially viable yet when we ask to see the list, we’re told there is no list.”

The MED discussion document outlines changes that could be made to the TSO and Vodafone will be making a full submission on the matter.

“The MED has rightly pointed out that the numbers just don’t stack up. These customers are counted as though they’re a cost to the country when in fact they’re some of the most important customers in New Zealand. The new TSO will hopefully address that situation before the industry pours yet more countless millions of dollars into a scheme that can’t name a single customer,” says Stanners.

ENDS

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