Charity begins on phone

Photo / Herald on Sunday

New Zealand's first charitable telecommunications trust will launch this week, promising to match prices offered by the major networks.

The Community Wireless Trust aims to take advantage of the Commerce Commission's move to force telcos to slash mobile termination rates, the fees they charge rival companies for receiving calls and messages.

The trust will use Telecom and Vodafone infrastructure, but 100 per cent of the profit will go into community projects.

Operations manager Matt Hampton said it would offer landline, mobile, broadband and 0800 number services on pre- or post-pay contracts, with no fixed terms.

It aims to match 90 per cent of prices offered by Telecom, 2 Degrees and Vodafone but has yet to finalise them.

Hampton said the trust was hoping to attract business and residential customers.

"The more people we have on board the more we can do. I'd like to think we could get a million customers on board.

"Once you start working out the profits a telecommunications company make off a million customers, it's quite disgusting."

The Commerce Commission this week ruled mobile termination rates must be slashed by next April to allow more competition.

Previously, networks billed each other more than nine cents for every text and about 16 cents for every call from another network.

The commission ruling forced this down to under 4 cents for a call and 0.06 cents for a text.

But Telecommunications Users Association chief executive Paul Brislen was concerned the savings would not be passed on to customers.

"This happened in Australia when the ACCC [Australian Competition and Consumer Commission] dropped mobile termination rates.

"Telstra didn't pass on any of it to their customers," he said.

"We're relying on their good grace.

"It would be a very bold and brash telco that put all the savings straight in their back pocket."

After the commission's decision, some smaller operators slashed their prices.

Massey University brand loyalty specialist Professor Malcolm Wright said if the major players didn't follow suit, smaller operators would be in a prime position to gain new customers. "The danger for anybody who doesn't drop their price is they will fail to acquire new customers, leading to erosion of their market share."

GET A BETTER DEAL

* Call your provider and find out if you're on the best plan. Ask what mobile termination rate savings will be passed on to you.

* Find out what other providers are offering. Smaller operators are very flexible.

* Consider getting internet, fixed-line, mobile and other services from the same provider and negotiate a package deal.

* Don't sign a long-term contract or you will miss out on expected price decreases over the next six months.

Source: TelecommunicationsUsers Association chief executive Paul Brislen