Government gives green light to industry-led termination rates plan

1 May 2007

The government has rejected a Commerce Commission recommendation dating back to April 2006 to regulate mobile phone charges and has instead accepted proposals from the operators to gradually lower prices. Telecom NZ and Vodafone will be legally obliged to cut fixed to mobile call costs over the next five years. Economic Development Minister Trevor Mallard said the operators would be held to their offers by legally enforceable deeds. New Zealand is said to have among the highest termination rates in the world.