Lobbyists say: Drop The Rate, Mate

A new lobby group made up of a disparate group of members is about to try its luck lobbying the Government to regulate parts of the mobile phone market.

In particular, Communications and Information Technology Minister Steven Joyce will be the target for the group which is seemingly led by Matthew Hooton, a long-time National Party supporter and activist.

The "Drop The Rate Mate" is a reference to Mr Joyce, who will undoubtedly be called a mate if he reduces the termination chargesThe group comprises Airnet NZ, Consumer NZ, Federated Farmers, the Federation of Maori Authorities, the New Zealand Union of Students Associations, the Telecommunications Users Association of New Zealand, new mobile entrant 2degrees and the Unite Union.

At a media launch in Wellington yesterday, Mr Hooton said the organisations involved in the group represented hundreds of thousands of mobile phone users who were being "ripped off" when they used their phones.

The group are putting their weight behind the Commerce Commission's draft recommendation on mobile termination rates.

A website has been set up at droptheratemate.org.nz

Mobile termination prices are the wholesale charges mobile phone companies charge for terminating calls or texts from other fixed or mobile networks.

In a draft report released a month ago, the commission recommended mobile termination prices should be regulated, and that undertakings submitted in lieu of regulation by Vodafone, Telecom and 2degrees should be rejected.

Mr Hooton said Mr Joyce would be subjected to some ferocious lobbying by Telecom and Vodafone and the campaign was aimed at showing him that not only was regulation the right thing to do, it was also the politically smart thing to do.

Each of the organisations was helping the campaign through either money, time or political contacts. However, questions about the extent to which 2degrees was funding the campaign were left unanswered.

Back to the irony then of a lobby group fronted by a National Party supporter asking a National-led Government to regulate termination rates to benefit competition and the consumer.

National is usually a light-handed regulator, but this is an issue affecting nearly every New Zealander. Mobile phone penetration is nearly 110% in this country, as many of us have phones from each network to get the best deal offered.

New entrant 2degrees has led the way by launching its service last week and charging about half the price of Telecom and Vodafone for its phone calls and texts. Unfortunately for the campaign, 2degrees only operates on pre-paid.

But if it is such a good idea, should not the threat to their market share act as a warning to the incumbents that dropping termination rates could be a good thing to do for their own business model?

Probably not, as this issue has been ongoing for many years.

Mr Joyce is expected to make his decision by the end of the year - light speed for a matter of telecommunications regulation.

He is likely to go for light-handed regulation, trying to work with Telecom and Vodafone, not against them.

- dene.mackenzie@odt.co.nz