Regulator: mobile charges should fall

9 Jun 2005

New Zealand’s telecoms regulator the Commerce Commission has published its preliminary decision on mobile phone termination charges. The telecoms commissioner Douglas Webb said in a statement that the current termination rates being charged are significantly above the levels required to cover costs. The country’s two main cellular operators, Telecom Mobile and Vodafone, charge around NZD0.27 per minute when charges of around NZD0.15 per minute would be sufficient to cover costs. Webb commented: “The commission considers that a regulated reduction in the price of terminating fixed line calls on a cellular network is likely to lead to increased competition and lower prices for fixed-to-mobile calls.”