Drop the Rate Mate - Matthew Hooton vs Clare Curran

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Posted Tue 2 March 2010 @ 9:54 a.m. by Ernie Newman

There's a stoush been going on about a comment attributed to "Drop the Rate, Mate" campaign spokesman Matthew Hooton in yesterday's issue of "Communications Day."

Hooton was reported as saying "We’ve spoken to members of the previous Labour government who feel they were bluffed by the ferocious corporate lobbyists working for the big telcos."

Clare Curran responded with a savage blog posting which accused Hooton of attempting to position the Labour Party on MTRs.

Hooton replied to the blog with a comment, and the heat now seems to have gone down a few degrees. And David Farrar’s Kiwiblog has joined the fray.

TUANZ is a member of "Drop the Rate" and I've participated in a few of its meetings with MPs from all over the house. There's been a strong acceptance of the Campaign message. I'm not sure that Matthew Hooton actually attempted to "position the Labour Party" but I can see how that inference might be drawn.

And I strongly suspect that when Labour does take a position, it will be supportive of Anita Mazzoleni's dissenting view - but that's for Labour to say.

Be assured, the MTR show is not over. TUANZ has sweated blood for seven years in this debate and is not about to give up at this eleventh hour.

Categories: Regulatory | Wireless carriers

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9 comments

• Paul Brislen says:

  Ernie, during the past year you've repeatedly called on lobbyists to leave the minister alone and for him to accept the Commerce Commission's findings. Now that the table is turned, will you be following your own advice? The Commission has recommended accepting the Undertakings for a very good reason: they're so close to the solution direct regulation will deliver that there's no point wasting another year on yet more proceedings to reach the same point. You can have today what you'll get in a year's time. Surely that's a win for everyone? The savings are delivered earlier if the Undertakings are accepted. The win for the telcos is that we can manage the process. The win for the Commission is they've achieved the outcome they want (lower MTRs). Surely now the time has come to step back and do what you said: let the minister accept the Commission's recommendation?

  Added: 2 March 2010, 1:28 p.m. Flag as Spam  |  Flag as Offensive

• Ernie Newman (TUANZ) says:

  Hi Paul. The Commission hasn't recommended accepting the undertakings -the Commissioners are divided. That is a very different matter. Commissioners at this level don't fail to agree unless there are very complex issues at stake. And its not a matter or reaching the same point as the outcome of regulation versus undertakings is very different. We will be submitting to the Minister on this in the next few days. All good fodder for debate when we have lunch soon.

  Added: 2 March 2010, 2:21 p.m. Flag as Spam  |  Flag as Offensive

• Bill Bennett says:

  I wrote the story that caused the storm and talked to both Matthew Hooton and Clare Curran. The issue here is language. It was clear to me in context that Hooton was talking about individual Labour members, rather than the Labour Party's official position. Earlier in the piece Hooton said; “We’ve been speaking to a very large number of members of parliament, making sure they understand the issue." Then later I wrote "Hooton says the campaign is getting good support from Labour, The Greens and sections of the Maori Party." Curran interpreted the indirect quote to be about the Labour Party, not the Labour members of Parliament.

  Added: 2 March 2010, 4:28 p.m. Flag as Spam  |  Flag as Offensive

• Tom Chignell says:

  Ernie
  I can see where you "mates" are going on this but the facts are clear. The Telecommunications Commissioner has made a recommendation to the Minister. There are no other recommendations for the Minister to consider/accept/reject/send back. In line with its obligations the Commission has included the views of two other Commissioners other than the Telecommunications Commissioner. One agrees with Ross. The other doesn't.
  You should feel very good about the outcome, Ernie. You have achieved bill and keep for SMS - probably unprecedented in regulatory circles. Since you got into this in 2004 rates have come down from 28c (minute plus second) to 5c (second plus second) in the undertakings. By the way, that's equivalent to 4c (minute plus second) or a 85.5% drop in termination rates. So, 100% on SMS and 85.5% on voice. You should be proud. So, why aren't you?
  By the way, I don't suppose Trevor Mallard feels "bluffed" as Matthew Hootton suggests. He actually made the right decision for consumers in 2007 faced with the Commission's own analysis and the offers of Telecom and Vodafone to pass through savings in termination rates. Something that has been thrown out by the current proceedings.
  Cheers
  Tom (I guess I must be the ferocious corporate lobbyist! ;-) )

  Added: 2 March 2010, 6:04 p.m. Flag as Spam  |  Flag as Offensive

• Analyst says:

  Wow Tom, Telecom's standard fixed to mobile calling rate has gone from 71 cpm to 63 cpm. I'm sure that wouldn't have happened without the undertaking!

  Added: 4 March 2010, 2:00 p.m. Flag as Spam  |  Flag as Offensive

• Paul Brislen says:

  You'll note of course that Vodafone can't control what a fixed line provider does with the increased margin they'll receive when termination rates fall. We can and did guarantee 100% pass through of our own fixed-line business - something that delivered $21m in savings over the first 21 months of the Deeds of Undertaking.

  Added: 5 March 2010, 12:31 p.m. Flag as Spam  |  Flag as Offensive

• Tom Chignell says:

  In reply to Analyst, I am no defender of Telecom but their average revenue per FTM minute was 34.69cpm for the quarter to 31 December 2009 (see latest Management Commentary).
  Anyway, why would anyone choose to pay 63c when you can get the same service from Vodafone for 36.6cpm? (http://www.vodafone.co.nz/home-phone-and-broadband/home-phone/calling-rates.jsp).
  No answer from Ernie yet?
  All the best
  Tom Chignell
  GM Corporate Affairs
  Vodafone NZ

  Added: 9 March 2010, 11:31 a.m. Flag as Spam  |  Flag as Offensive

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  Added: 20 January 2012, 11:59 p.m. Flag as Spam  |  Flag as Offensive

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  Added: 26 January 2012, 7:19 p.m. Flag as Spam  |  Flag as Offensive

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