2degrees’ cute and fun adverts, which feature hot Kiwi comedian Rhys Darby, indicate the new telco is, initially, heading for the lower end of the market – the ‘no-contract’ pitch, plus the fact that the telco will be selling through supermarkets and petrol stations, show this. However, this still bodes well for business users in the longer term: anything that puts downward pressure on New Zealand’s sky-high mobile prices is good news for consumers and business users alike. And, 2degrees’ CEO, Mike Reynolds, has indicated that he intends that his company play in the business space too.

Business will no doubt be cautious about dipping its toes into the 2degrees pool at first, but this is definitely a good start. The fact that the Commerce Commission has proposed regulating – and halving – the current mobile termination rates that Telecom and Vodafone charge for terminating calls on their networks also bodes well. As the newcomer, 2degrees will be hit hard by these fees.

The three now have to wait on Communications and IT Minister Steven Joyce’s decision. But, before that, they have until July 27 to re-submit new proposals on what they think MTRs should be. The commission rejected their earlier proposals as being too high, in Telecom’s and Vodafone’s case, while 2degrees effectively proposed the elimination of MTRs.

Chief executive of the Telecommunications Users Association of New Zealand (TUANZ) Ernie Newman says that MTRs add $300 a years to every person’s mobile phone bill.

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9/7/14_ex_h

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