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Australia and New Zealand Tackle Roaming Quality and Cost Concerns

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October 08, 2012

Australia and New Zealand Tackle Roaming Quality and Cost Concerns

By Rich Steeves, TMCnet Web Editor


Roaming quality and cost are, of course, international issues. When people travel for business or pleasure, they have to deal with bill shock and inconsistent quality when roaming abroad. Now, carriers in Australia and New Zealand are looking to address issues of roaming quality and cost in that part of the Southern Hemisphere.


The combined forces of Optus, Vodafone (News - Alert) and Telecom New Zealand have been lobbying the governments of both Australia and New Zealand to relax regulations and let free market forces deal with the issue of mobile roaming between the two nations. Communications Ministers from the two countries recently released a joint report looking at ways that the governments could coerce carriers to lower costs.

Representatives from Optus (News - Alert) stated that most users are unaware of global roaming quality issues, though many are looking into options to help them avoid bill shock. "Optus submits that the Departments could enhance the effectiveness of retail transparency measures, by reducing artificial price floors imposed by the wholesale rates. Optus notes that some aspects of the way in which bilateral wholesale rates are set may display elements of market power that limit the effectiveness of wholesale competition," representatives from the company suggested.

Vodafone agreed with Optus, stating that competition was the key to improving roaming quality issues. "Vodafone New Zealand will be bitterly disappointed if our hard earned competitive advantage in delivering market leading rates for trans-Tasman roaming is blunted or removed by some form of regulatory intervention into the trans-Tasman roaming market,” representatives from Vodafone stated.

Finally, the Australian Mobile Telecommunications Association, in conjunction with the Communications Alliance, also stated that regulation is not the right path for dealing with this problem. "The Associations would prefer to see the regulators step back and allow the TCP code and other industry measures to be implemented, and current retail market offerings to be given time to have an effect on the market before further intervention is considered," a submission by the two groups stated.

"The Associations believe it would be imprudent to intervene further in the market at this point in time, before consumer awareness measures have been given time to have an impact on the market, and during a time of rapid technological developments and evolution."




Edited by Brooke Neuman







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