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Telecommunications Fixed to mobile calls cheaper in NZ than Australia
Telecommunications Fixed to mobile calls cheaper in NZ than Australia | Fixed to mobile calls cheaper in NZ than Australia |
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| by Stuart Corner | |
| Monday, 12 January 2009 | |
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The regulated component of the cost of a fixed-to-mobile call is the Mobile Terminating Access Service (MTAS): the maximum price a mobile carrier is allowed to charge to deliver an incoming call to one of its customers. The key difference between Australia and New Zealand is that both Vodafone and Telecom NZ have committed to pass on all savings from reduced MTAS prices by reducing the retail price charged to customers. Vodafone claims that this regime has already resulted in average prices in New Zealand being 30 percent lower than in Australia. According to Vodafone NZ, "Regulating termination prices in Australia has lead to a substantial margin improvement to the retail operators with only a quarter of the savings being passed on to consumers." It says that the MTAS prices it is now proposing would see a further reduction of fixed to mobile termination rates of 21 percent between 2011 and 2014. The termination costs of mobile to mobile voice calls and SMS rates would come down 26 percent over the period of the new undertaking. The full reductions in these prices would be passed on to consumers in the form of reduced retail prices. CONTINUED |
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