7. Hon BRIAN DONNELLY (NZ First) Link to this
to the Minister for Economic Development
Has he received any reports regarding the reduction of fees charged by mobile phone companies being passed on to fixed-calling customers?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
Yes, I have received deed polls from Vodafone and Telecom specifying their commitments to reduce mobile termination rates and to pass the reductions through to customers. These reductions are from 20c in both cases to 14c for Vodafone and 12c for Telecom.
Hon Brian Donnelly Link to this
What options are available to the Government if it is found by the annual audits that either one or both of the companies are reneging on their commitments to reduce termination rates or to pass those reductions on to fixed-calling customers?
Hon Dr MICHAEL CULLEN Link to this
Deeds provide legally enforceable processes. Rates can be enforced by fixed-line providers while pass-through can be enforced by the Crown, and under the Vodafone deed pass-through can also be enforced by fixed-line customers.
Hon Brian Donnelly Link to this
Can the Minister confirm that policy settings to put pressure on telecommunications companies to reduce the costs of mobile phone calls are outlined in the confidence and supply agreement between New Zealand First and his Government?
Hon Dr MICHAEL CULLEN Link to this
Yes, page 4 of the confidence and supply agreement between New Zealand First and the Labour Party specifically refers to this pressure on telecommunications companies to reduce the cost of mobile phone calls.