Vodafone calls for fair go for fixed line customers calling mobiles

Vodafone says fixed line customers are being unfairly disadvantaged by the proposed reduction of mobile termination rates because the reductions are unlikely to flow through as cost savings to customers making calls from fixed lines to mobiles.
By: Vodafone Hutchison Australia
Sept. 27, 2011 - PRLog -- Vodafone says fixed line customers are being unfairly disadvantaged by the proposed reduction of mobile termination rates because the reductions are unlikely to flow through as cost savings to customers making calls from fixed lines to mobiles.

The ACCC today released a draft decision on the changes to the Mobile Terminating Access Service (MTAS) pricing. This is the wholesale charge paid by Telstra and other operators for calls made from a fixed line to a mobile network, and by all mobile network operators for mobile call made from their network to another mobile network.

The ACCC proposes a 60% reduction in the wholesale price, but have not accepted recommendations that would see the benefit of the reduction passed on to Telstra’s fixed line customers.

“We’re disappointed that the ACCC is proposing this reduction in the wholesale price Telstra pays for calls using other mobile networks when there’s been little evidence that this benefits their customers. We believe that if it were to be made final, this Draft Decision would be a missed opportunity to deliver real savings for fixed line customers ,” said Matthew Lobb, General Manager of Public Policy at Vodafone.

Despite multiple and substantial reductions in the wholesale price for calls terminating on mobile networks over the last decade, Telstra’s average retail fixed to mobile prices have remained relatively stable.

“Telstra customers making calls from their fixed lines to mobile phones have not benefited from the substantial wholesale price reductions,” said Lobb. “We estimate that the unrealised consumer benefit from the lack of pass through for fixed to mobile customers amounts to $1.1 billion between 2004 and 2010.”

“We will continue to work with the ACCC and other stakeholders to avoid, fixed line customers paying unreasonably high prices when they make calls to mobile phones,” explained Lobb.

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Vodafone Hutchison Australia (VHA) operates the Vodafone, 3, and Crazy John’s brands.
Formed in June 2009 following a merger between Vodafone Australia and Hutchison 3G
Australia, VHA provides mobile services to over 7.2 million customers in Australia.
www.three.com.au & www.vodafone.com.au
End
Source:Vodafone Hutchison Australia
Email:***@vodafone.com.au
Tags:Vodafone, Accc, Telstra Fixed Line, Mobile Networks
Industry:Telecommunications
Location:New South Wales - Australia
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