Vodafone NZ is unhappy with planned termination charges

14 Feb 2006

Mobile operator Vodafone New Zealand has baulked at plans by the Commerce Commission to regulate Mobile Termination Rates (MTRs), saying that such a move would only make matters worse for the country’s mobile phone users. The cellco believes it is a myth that the introduction of regulation will result in lower call charges, arguing that if anything, the opposite is true. Vodafone Finance Director David Sullivan added that the Commission itself has acknowledged that regulated MTRs would mean mobile customers would have to pay more for their calls and says the company predicts 18,000 people will abandon using its services if the plans go ahead. Vodafone NZ is concerned that moves to force it to cut its mobile termination prices will only ‘make more money for its biggest competitor [Telecom Mobile]’, creating an uneven playing field in the mobile market. The operator has, however, offered to voluntarily cut its MTR in an effort to avoid the proposed regulation.

New Zealand, Vodafone New Zealand