NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Technology

<i>Anthony Doesburg</i>: Mobile charges a heartbreaker

NZ Herald
6 Feb, 2011 04:30 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Thousands of Kiwis have two mobiles, thanks to the deep discounts for calls and texts to other people on the same network.
Thousands of Kiwis have two mobiles, thanks to the deep discounts for calls and texts to other people on the same network.

Thousands of Kiwis have two mobiles, thanks to the deep discounts for calls and texts to other people on the same network.

Cheaper calls may be at hand, but you'll probably still need two phones to get the best deals.

January has passed and life, alas, is returning to normal. The kids are back at high school. University and polytech students are dispersing to campuses around the country. And the Commerce Commission continues its long-winded deliberations aimed at bringing some sense to the New Zealand mobile phone market.

As the holiday hot spots empty out, the mobile networks will be straining under the load of texts that attempt to keep thousands of summer crushes alive. Sadly, for many, young love doesn't stand a chance.

It was always going to be tough for the girl doing surveying in Dunedin to keep the flames of romance burning with the boy studying politics in Auckland. But the weird - some would say discriminatory - way the New Zealand mobile phone market is divided up almost guarantees their hearts will be broken.

Blame it on on-net discounting. This is the practice, more prevalent here than elsewhere in the world, of mobile network operators offering deep discounts to subscribers who confine their texting and calling to other people on the same network.

Since Telecom owns the Dunedin market and Vodafone has Auckland sewn up, cellular communications between our lovelorn - and, more than likely, hard up - pair will almost certainly cease. Unless they follow the example of Tim Dibley and thousands of other Kiwis and get themselves a handset for each network.

But it's a daft way to run a telecommunications system, says Dibley, an Aucklander in the second year of an engineering degree at the University of Canterbury.

Telecom's XT network dominates in Christchurch, so he has a Telecom handset to run his university social life and a Vodafone one to stay in touch with Auckland friends and family. Lots of his Christchurch mates do the same.

"Having to have two phones is a bit stupid, really," he says. In fact, his XT plan doesn't penalise him for texting Vodafone numbers, so he gets by topping up just the Telecom phone, using the Vodafone one for incoming texts only.

2degrees, the latecomer to the mobile market, thinks it's pretty stupid too. It had been hoping the Commerce Commission, in its latest attempt to bring mobile pricing into line with the rest of the world, would have tackled the on-net discounting issue.

But it wasn't to be. The commission acknowledges that the proportion of on-net traffic here is comparatively high - and rising - but doesn't believe it warrants special attention.

But the debate isn't over yet.

Another milestone in the interminable process of deciding how much the networks can charge for handling calls from each other's subscribers - the wordy Mobile Termination Access Services Standard Terms Determination (MTAS STD is barely any better) - will be reached on Monday. That's the deadline for submissions on a draft MTAS STD released just before Christmas.

Once submissions are in, 10 days are allowed for cross-submissions; there'll then be a conference on March 1 and 2 to talk it all over and by the end of the month the whole sorry saga is supposed to be over, with whatever changes are made to the draft then set in stone.

Regardless of what the commission finally decides about on-net discounting - and, frankly, it's not showing much willingness to grasp the nettle - come April 1 there should be good news for Kiwi mobile users.

Barring major changes to the draft determination, the per-minute cost that networks will be able to charge for terminating each other's calls will be cut from 14c to 4.68c, falling to 3.91c in three years. Great, says Tuanz, the telecommunications users group (whose new head, Paul Brislen, was the spokesman for Vodafone until last year) - as long as the networks pass the cut on to subscribers. You might expect that with Brislen's knowledge of the telcos' inner workings, he could shame them into playing along if they prove reluctant.

A past commission ruling might have given 2degrees some hope that its argument about the discriminatory nature of on-net pricing would be heard.

When Telecom attempted to charge more for calls made to Vodafone landlines the commission stepped in, saying Vodafone's ability to compete in the local calling market would be affected.

But it says a similar restriction on on-net discounting wouldn't be justified under the proposed new termination rates, which "will enable a new entrant such as 2degrees to compete with the on-net prices of the incumbent networks". The one concession it offers is that it might look again at the duration of the three-year "glide path" - the period when termination rates fall gradually from 4.68c to 3.91c.

That sounds like little consolation for 2degrees, not to mention the new crop of young lovers, who're destined either for short-lived romances or carting around pockets full of phones.

Anthony Doesburg is an Auckland technology journalist

Discover more

Telecommunications

Regulate mobile rates - Commerce Commission tells minister

15 Jun 11:50 PM
Telecommunications

NZ to regulate mobile phone rates

03 Aug 11:50 PM
Telecommunications

Telco regulation process starts with workshop

28 Sep 04:30 PM
Telecommunications

2degrees on $100m expansion path

10 Feb 04:30 PM
Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.
Save

    Share this article

Latest from Technology

Premium
Business

Ex-Rangitoto student is twice in the gun in Trump's war on Harvard

01 Jun 05:27 AM
Premium
Business|companies

Tech Insider: Jamie Beaton's message for students caught in Trump's war on Harvard

29 May 11:00 PM
Business|markets

Why Nvidia's dominance faces new challenges despite strong earnings

28 May 11:19 PM

Deposit scheme reduces risk, boosts trust – General Finance

sponsored
Advertisement
Advertise with NZME.
Recommended for you
One person with critical injuries after Hamilton crash involving car and pedestrian
New Zealand

One person with critical injuries after Hamilton crash involving car and pedestrian

02 Jun 07:59 AM
'Regime of corruption': Divisive election to choose judges by vote
World

'Regime of corruption': Divisive election to choose judges by vote

02 Jun 07:13 AM
Injury blow: Warriors' Barnett sidelined for rest of NRL season
Warriors

Injury blow: Warriors' Barnett sidelined for rest of NRL season

02 Jun 07:02 AM
'We were all feeling it': Emotional tribute to slain teen at league tournament
Rotorua Daily Post

'We were all feeling it': Emotional tribute to slain teen at league tournament

02 Jun 06:59 AM
'Greatest show on earth': Dazzling aurora display may return tonight
New Zealand

'Greatest show on earth': Dazzling aurora display may return tonight

02 Jun 06:56 AM

Latest from Technology

Premium
Ex-Rangitoto student is twice in the gun in Trump's war on Harvard

Ex-Rangitoto student is twice in the gun in Trump's war on Harvard

01 Jun 05:27 AM

Crimson cofounder explains how Chinese students can be invited to join the Communist Party

Premium
Tech Insider: Jamie Beaton's message for students caught in Trump's war on Harvard

Tech Insider: Jamie Beaton's message for students caught in Trump's war on Harvard

29 May 11:00 PM
Why Nvidia's dominance faces new challenges despite strong earnings

Why Nvidia's dominance faces new challenges despite strong earnings

28 May 11:19 PM
Premium
Morrison pockets $456m in fees as Infratil makes net loss of $261.3m

Morrison pockets $456m in fees as Infratil makes net loss of $261.3m

28 May 04:23 AM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP
search by queryly Advanced Search