Riposte to Vodafone in The Independent
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Posted Wed 22 August 2007 @ 7:52 p.m. by Sarah Putt
Vodafone's suggestion that it would be out of pocket by $250 million if mobile termination rates had been regulated earlier this year has cut no ice with TUANZ CEO Ernie Newman.
In a letter to The Independent Financial Review he argues for effective regulation to ensure that a user calling someone on a mobile network other than their own isn't charged prohibitive rates.
"Termination rates are widely accepted as an area of market failure. Users can choose the network for their own phone but not that for the people they call. They are captive to whatever terminating network the other party selects."
Newman says that the any loss suffered by Vodafone as a result of regulated mobile termination rates would be "matched by a gain for business and residential customers."
For those of you who don't subscribe to The Independent, here's a copy of the letter published today:
Categories: Regulatory | TUANZ policy | Wireless carriers