TelstraClear cuts cost of some cellphone calls; cites mobile regulation

UPDATE 3.45pm: TelstraClear told NBR this afternoon that it had 45,000 mobile customers (see Telecom, Vodafone and 2degrees latest mobile numbers here).

Spin doctor Gary Bowering offered, "We are reviewing our business mobile offers at the moment and details on what changes may be made to these plans will be communicated over the next week."

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12.30pm: It said of those customers, 27,000 were on consumer plans. The balance on business plans.

The company said it 

TelstraClear has cut its residential mobile-to-mobile call rate from 29 cents a minute to 19 cents a minute, effective immediately. The new rate also applies to residential mobile-to-landline calls.

The company cited yesterday's mobile price regulation as the spur for its price reductions.

Cuts don't extend to business
Spokesman Gary Bowering told NBR the new rate applied to consumer plans. He confirmed they would not extend to business plans.

"We're looking at business options now. Residential/consumer mobile rates are simple as we have a standard per minute rate (was 29, now 19 cents a minute). Business customers have different needs and their plans can be highly tailored so there's a lot more work needed to address rate changes."

"Best rate"
“I believe this will be the best rate in the market," TelstraClear chief executive Allan Freeth said this morning.

TelstraClear lacks its own mobile network, but sells a rebadged version of Vodafone's 3G service.

The telco says it has 45,000 mobile customers.

Dr Freeth said the cuts were made in reaction to yesterday's Commerce Commission determination on mobile termination rates, which cut the fees phone companies can charge each other when a mobile call, or txt, is received by a rival network.

The TelstraClear boss said his company was not waiting to receive money from the wholesale price cut but rather cutting its retail prices straight away.

The Telecommunications Users Association (Tuanz) is worried that phone companies will simply pocket the wholesale rate reductions, rather than passing them on to customers in the form of cheaper monthly phone bills. The lobby group has called for a national Day of Calling, encouraging customers to phone their carrier and ask for a cheaper rate.

Tuanz has challenged other phone companies to follow TelstraClear's lead, but it could be in for disappointment.

2degrees has said anticipated MTR cuts are already built into its plans, although future price cuts are possible; Telecom said it has already cut prices on mobile services this year and did not outline any immediate plans for futher cuts; neither has Vodafone.

The commission said yesterday that it would monitor mobile pricing every month, speficially the diffence between charges for on-net calls (those to othes on the same network) versus off-net calls, an issue it sees as related to MTR.