Commerce Commission reports on MTR cut

20 Dec 2011

New Zealand’s Commerce Commission has revealed that consumers are starting to benefit from the cut in mobile termination rates (MTRs) implemented seven months ago. Last May the commission slashed MTRs from NZD0.14 (USD0.11) per minute to NZD0.07. The move has resulted in the gap between the average same-network call cost and the average cross-network call cost narrowing between August and October. The report also stated that traffic between different networks increased over the same time period. ‘The introduction of less restrictive plans, and the continuing fall in the difference between on-net and off-net prices, have resulted in increasing cross-network traffic for calls and texts,’ telecommunications commissioner Dr Ross Patterson said. ‘The commission expects the on-net discount to continue to fall. These changes lessen the barriers to switching mobile providers, so consumers should no longer be discouraged from changing networks.’

New Zealand, Commerce Commission of New Zealand