As Vodafone found out the hard way last week, it's very hard to please the regulators when it comes to pricing.Just as Vodafone and rival Telecom were inhaling for a sigh of relief, thinking they had escaped mobile termination regulation, Vodafone made t
As Vodafone found out the hard way last week, it’s very hard to please the regulators when it comes to pricing.
Just as Vodafone and rival Telecom were inhaling for a sigh of relief, thinking they had escaped mobile termination regulation, Vodafone made the poorly considered decision to offer a really good deal to its customers (the $12 plan).
This quickly caught the attention of Communications Minister Steven Joyce, who asked the Commerce Commission to have another look at regulating mobile termination rates to ensure such unfairly awesome deals are never offered again.
But really, has any regulator anywhere ever been happy with the pricing of any product?
If a company charges more than its competitors it is price gouging. Regulate.
If a company charges less than its competitors it is dumping. Regulate. [Another reason to charge less is to block a new competitor from the market, which is the case with the Commerce Commission's investigation of mobile termination rates - Technology Editor.]
If a company charges the same as its competitors it is colluding/price fixing. Regulate.
Good luck slipping through that net.
