New Zealand mobile phone rates not high because of costs

[Bob Russell]

Telecommunications Commissioner Douglas Webb has decided that he can't agree with Telecom and Vodafone's explanations about why it's so expensive to make mobile calls in New Zealand. They have claimed that it's due to high costs and not lack of competition. (What else would you expect a good duopolist to say?)

Turns out that "The market dynamic between Telecom and Vodafone seems to be focused more on brand differentiation than on the type of product innovation and pricing levels we would expect to see if the market was effectively competitive."

Webb will investigate the situation. If this is his opening shot, I can't wait to hear what he has to say about pricing after he has some real facts in his back pocket!

From the New Zealand Herald via Lockergnome.