Low Mobile Termination Rates may bring cheaper calls in New Zealand
According to the New Zealand Commerce Commission, the wholesale prices of mobile network operator for providing services to customers from other network operators should be reduced. The group is appealing for the price of calling mobile phones to drop by 10 cents a minute.
The commission said wholesale prices for voice calls to a mobile network should be set at a cost-based benchmark, starting at a rate of 4.6 cents per minute.
Telecommunications Commissioner Ross Patterson said the reduction in voice call prices was justified because of unique market conditions in this country. “The removal of this barrier will promote vigorous competition for the long term benefit of consumers.”
Mobile termination charges are a significant contributor for the final charges of calls and text messages to mobile phones. New Zealand’s mobile market is currently dominated by Telecom, holding a 46.6% market share, and Vodafone, with a 49.6% share, latest Commerce Commission data showed in May. New entrant 2degrees Mobile Ltd., which launched its service last August, had a 3.8% share.
The Commerce Commission now seeks submission on the draft determination with a final determination due in March. So wait for the march and possibly NZ mobile users will be able to enjoy cheaper mobile calls.