Vodafone pulls controversial mobile plan

Vodafone has pulled its controversial Talk Add-On mobile plan from the market, just days after the Commerce Commission reversed its recommendation on mobile termination rates.

The commission has been concerned mobile termination rates - the fee telcos charge each other to receive calls and texts from competitors' networks - are higher in New Zealand than other countries and may be inhibiting the entry of new mobile players.

In February, the commission recommended Communications Minister Steven Joyce accept Vodafone and Telecom's joint proposal favouring a commercial solution over regulation.

Last week it reversed that recommendation, citing Vodafone's highly competitive on-network prepay Talk plan.

The plan, launched last month, offered prepay customers 200 minutes of landline and mobile calls to other Vodafone mobiles for $12 per month.

The plan has been replaced with Simply Prepay, which lets customers call any mobile or landline in New Zealand at anytime for 49c per minute.