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

 

Vodafone Misleading Over Termination Rates

DROP THE RATE, MATE!
(Airnet NZ, Consumer New Zealand, Federated Farmers, the Federation of Maori Authorities, the New Zealand Union of Students’ Associations, the Telecommunications Users Association, 2degrees and Unite)

MEDIA RELEASE
Thursday 3 December 2009
For Immediate Release

Vodafone Misleading Customers Over Termination Rates

Vodafone has been distributing misleading information on mobile termination rates (MTRs) through its retail network.

The material, obtained from Vodafone’s Queen Street store in Auckland, carries an article written by Vodafone’s External Communications Manager, Paul Brislen.

Matthew Hooton, spokesman for the Drop the Rate, Mate! campaign for more competition and lower prices in the mobile phone market, says the article is misleading and wrong.

“Vodafone is clearly desperate to maintain its ridiculous and self-serving argument that high MTRs are somehow a good thing for consumers,” Mr Hooton said. “What it really wants to do is continue using high MTRs to keep retail prices high and deter new competitors from the market. In this publication, it seems to be willing to resort to misleading its customers. It’s important to get the facts into the public domain.”

Vodafone says: The Commerce Commission in its investigation into MTRs isn’t going to work out what New Zealand’s costs are. It’s just going to use a list of nine countries’ costs and pick the middle one.

The truth: The Commission has, as part of due process, benchmarked costs in countries where MTRs have been calculated in order to see if New Zealanders were likely to be paying too much. The results showed that we’re probably paying more than double what we should be. If the Government decides to regulate MTRs, then contrary to Vodafone’s article, the actual cost in New Zealand will be calculated.


Vodafone says: MTRs don’t have anything to do with retail prices.

The truth: Excessive MTRs keep retail prices high and prevent effective competition. Half the world has zero or very low MTRs and retail prices for calls in those countries are significantly below New Zealand as competition is allowed to flourish.


Vodafone says: If there are no MTRs then a whole raft of customers run into trouble.

The truth: This contradicts Vodafone’s previous statement that MTRs do not affect retail prices. It is also a veiled threat to customers that Vodafone will increase its prices if MTRs are removed. In reality, in countries where there are low or no MTRs consumers pay very low rates for calls –including Vodafone customers in those countries.


Vodafone says: Those people who don’t make lots of calls but receive lots are at risk because they stop being profitable and start costing the telco money.

The truth: This is another veiled threat that Vodafone will increase its retail pricing as a result of lower MTRs. This is scaremongering and extremely unlikely to occur. In fact, in all other countries where MTRs have dropped significantly, we see much lower prices and more competition.


Vodafone says: New Zealand’s retail pricing is better than most other OECD countries.

The truth: More than two-thirds of Kiwis are on prepaid mobile plans, and Vodafone and Telecom’s prepaid prices are some of the most expensive in the OECD.

The launch of Drop the Rate, Mate! was sponsored by Airnet, Consumer New Zealand, Federated Farmers, the Federation of Maori Authorities, the New Zealand Union of Students’ Associations, the Telecommunications Users Association, 2degrees and the Unite Union.

Since then, the campaign has received support from over 9,500 New Zealanders through its website at www.droptherate.org.nz.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>

ALSO:



Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO:

Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>

ALSO: