16 Jun 2010

2degrees urges Govt to regulate cost of inter-network calls

9:10 pm on 16 June 2010

The mobile phone company 2degrees is urging the government to move quickly to regulate the price of switching calls between mobile networks.

The Commerce Commission has recommended regulation of the rates, which is expected to reduce the cost of cellphone calls.

Vodafone and Telecom have resisted regulation, saying mobile rates will fall faster under new pricing proposed by the two companies.

But the chief operating officer at 2degrees, Bill McCabe, says New Zealand is the only country aside from Mexico which doesn't regulate mobile termination rates.

He says Vodafone and Telecom profit from the current regime and will do all they can to stall any change.

Mr McCabe says regulation is always done in the interests of consumers and it should be an easy decision for the Government to make.