Termination rates – a kick-start for competition

Termination rates – a confident kick-start for competition

Today’s decision to regulate Mobile Termination Rates (MTRs) is a win for consumers, opening the door to greater competition and even better deals for New Zealand consumers and businesses.

2degrees Chief Executive Officer Eric Hertz says the decision by Communications Minister Steven Joyce is a boost for competition.

“When 2degrees entered the market we cut standard prepay rates in half. Yesterday, we celebrated our first birthday by launching our 3G network, announcing plans that make mobile broadband affordable,” says Eric.

“Certainty around mobile termination rates gives us increased confidence as we plan further network investment, sign leases for stores and prepare to offer pay monthly plans,” says Eric.

2degrees is also encouraged by the message the decision sends to the industry.

“The government’s vigilance will be crucial in coming months because 2degrees has plans that will unsettle its competitors, but delight mobile consumers.”

Mr Hertz is hopeful the decision will be followed by a fast standard terms determination process - the final step in setting realistic mobile termination rates.

Excessive mobile termination rates have held competition back for more than a decade. All OECD countries, except Mexico, regulate MTRs and this decision will bring New Zealand into line with international best practice.

ENDS

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