2degrees not happy with ComCom

It is no surprise that 2degrees is very unhappy with the Commerce Commission’s decision to accept its rivals Telecom and Vodafone’s proposals over its own.

New Zealand’s third mobile carrier, that launched late last year, has come out strong against the commission’s decision to recommend controversial mobile termination rates (MTRs) are not regulated.

In a statement today, 2dgrees said, “today is a very disappointing day for new Zealand mobile users. After much delay, the commission appears to have squandered a golden opportunity to finally bring New Zealand mobile prices into line with the rest of the developed world.”

“New Zealand consumers suffer from some of the highest mobile prices in the world. The commission’s recommendation to leave the decision on access pricing up to the incumbents, Vodafone and Telecom, will mean this burden on New Zealanders continues for the foreseeable future.

“We agree with Commissioner Mazzoleni’s dissenting opinion that without regulation the uneven playing field will continue in favour of the large mobile networks, and that the full benefits of rigorous competition bringing lower prices will be stifled.”

2degrees said New Zealanders deserved better. “We will now take some time to fully understand the recommendations and will put our detailed views to the minister [Communications Minister Steve Joyce] in due course.”

Earlier this month, 2degrees chief executive told NBR it would be hard for the company to gain market share if MTRs were not regulated, as calls across networks would be too expensive for consumers.

Vodafone;
The global telco also released a statement today welcoming the commission's decision to recommend the deal it has fought so hard for.

If Mr Joyce accepts the commission's recommendation, the new termination rates will take effect from October 1. Earlier this month, Telecom advised the commission it would change its starting date for MTR reductions to meet Vodafone's proposed date of October 1.

Vodafone New Zealand GM of corporate affairs Tom Chignell said the outcome was a “pragmatic one” given the uncertainty around a long regulatory process and whether consumers would actually reap savings.

“We have always preferred commercial outcomes to regulation.  New Zealand’s rates are broadly in line with Europe’s rates already  and through this, and the previous investigation, the Commission has managed to elicit massive voluntary reductions in termination rates for voice and SMS [txt].”