Quarter of a million rural customers should expect cheaper mobile rates

Federated Farmers lobbying looks like it could deliver much cheaper mobile phone calls and texts for over a quarter of a million rural telecommunication customers.

“As we move into a wireless future with mobile phones an essential farm tool, the Federation has successfully been part of a lobby to cut the cost of using them,” says Donald Aubrey, Federated Farmers telecommunications spokesperson.

“The Commerce Commission has looked into this and found the termination rates were not just high, but a real barrier to competition.

“Today’s determination by the Commerce Commission means that the termination rate for each text message will reduce from the current $0.095 cents per text to $0.06. A potential per text saving of $0.089 cents.

“Mobile termination rates are a key consideration for farmers. Calls will fall by at least $0.14 cents per minute to $0.04 cents per minute from 1 April 2012, if this determination is passed onto users.

“Federated Farmers expects these savings will be passed through to consumers when the telcos have digested the determination. The Commerce Commission is using a carrot approach at the moment but should not be afraid of using its regulatory stick.

“This whole process was about lowering the cost for mobile phone users. Mobile phone users need to benefit the most from this decision.

“Almost two years ago, Federated Farmers got the termination rate ball rolling for rural New Zealand with our active participation in the “Drop the rate, mate!” campaign. New Zealand continues to have some of the highest mobile termination access services in the OECD.

“Lowering these charges promotes competition in the telecommunications marketplace benefitting end-users and New Zealand’s overall competitiveness.

“Farmers and the rural community have the potential to save money given we are heavy users of mobile phones where we have reception of course. It means more money is available for productive investment on-farm including adoption of wireless broadband.

“Federated Farmers is also keen to look into the data charges associated with 3G modems, in comparison to mobile phones tethered and used as 3G modems,” Mr Aubrey concluded