NZ Gov't survey finds trans Tasman roaming costs prohibitive

Stuart Corner
Thursday, 09 June 2011 16:41

IT Policy - Regulation

A survey undertaken by New Zealand's Ministry of Economic Development has found the costs of data roaming for New Zealand businesses to be prohibitive to their staff doing business in Australia.

The results of the survey heighten the likelihood of the Australian and New Zealand governments stepping in to regulate trans-Tasman mobile roaming charges, both data and voice. Earlier this year the two governments embarked on a joint investigation into trans-Tasman roaming charges.

They said that the investigation would "seek to determine: whether, in the provision of trans-Tasman roaming services, there is wholesale market failure; if so, whether it is affecting retail customers; if so, whether market forces are likely to resolve the failure and any impact on retail customers; and if not, whether regulatory intervention is appropriate."

The NZ survey results were released on the same day as the OECD released a report on the cost of mobile data roaming among OECD members. It concluded that prices are too high, that this signifies a lack of retail or wholesale competition, or both and called on regulators and policy makers to boost competition to bring prices down.

The New Zealand survey results clearly indicate that the cost of trans-Tasman roaming services is affecting retail customers. The survey found that "In general, individual travellers don't seem to access the Internet greatly through mobile devices as they are worried about the cost," and "Almost all businesses provide their staff with a mobile phone that they can use while in Australia [but] have a policy that staff were to use them 'only if they really need to' as they were worried about the cost of roaming in Australia."

The survey also found that: "A reasonable number of businesses provide their staff with a laptop with a mobile Internet device which they can use in Australia. Again, however, most have a policy that staff are to use them 'only if they really need to' as they are worried about the cost of roaming in Australia."

Releasing the results of the survey, communications and IT minister Stephen Joyce, said: "I am concerned at the number of business respondents who indicated that, because of the cost, they encourage staff to use data roaming only if they really need to. The majority of Kiwi businesses surveyed also encourage staff to minimise calling and texting when in Australia." Results of the survey can be found here.

One alternative to prohibitive mobile data roaming costs is WiFi and global hotspot access provider Boingo has just introduced unlimited access from 145,000 Asia Pacific hotspots for $US11.95 per month.