2degrees' success changes debate: rival

2degrees chief executive Eric Hertz. Photo / Richard Robinson

Mobile operator 2degrees' latest customer numbers change the debate about regulation, says rival Vodafone.

2degrees revealed yesterday that it has 580,112 mobile customers, up from 206,000 in February last year.

The company began offering mobile services in August 2009.

The new figure puts 2degrees' customer share at about 11 per cent.

Vodafone has about 46 per cent and Telecom about 41 per cent, with the remainder made up by smaller telcos.

Vodafone said the announcement put a new slant on discussions of mobile termination rates.

"The customer numbers put a whole new light on 2degrees' argument that further regulation [on the rates] is needed," said Vodafone spokeswoman Michelle Baguley.

"We question that the regulation is needed given that they've done so well."

Termination rates are the fees telcos charge each other for receiving a call or text message from a rival network.

The Commerce Commission indicated in December that it may reduce the termination rate for mobile calls by around 10 cents, to 4.68 cents per minute.

2degrees has repeatedly called for the rates to be lowered, saying they are a barrier to competition.

But Vodafone argued dropping the rates would damage the industry.

2degrees chief executive Eric Hertz said yesterday cuts to termination rates would allow the company to offer better deals to its customers, but not necessarily drop the price of calls.

Forsyth Barr's Guy Hallwright said dropping the rates would not directly help 2degrees to improve its customer base.

He said the move "potentially has more of an impact in the fixed line to mobile market than in mobile-to-mobile".