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Aus, NZ inspect mobile roaming 'failure'

In a trans-Tasman double team, New Zealand and Australian governments have released a discussion paper mobile roaming charges, saying there is "some evidence of market failure".
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Written by Colin Ho on

In a trans-Tasman double team, New Zealand and Australian governments have released a discussion paper mobile roaming charges, saying there is "some evidence of market failure".

Mobile phone close up

(Mobile Phone image by Milica Sekulic, CC2.0)

"The retail analysis undertaken by the agencies provides some evidence of market failure. In other words, the prices appear to be above, and the pricing transparency and consumer awareness below, those which might prevail in a competitive market," the discussion paper said.

"However, more information and further analysis is required for the agencies to conclude that this is indeed the case."

Despite claims about high pricing, lack of transparency and lack of consumer awareness about pricing schemes, the paper concluded that the overall quality of service and features were reasonable.

The paper looked at mobile roaming services operating across the Tasman, and compared Australian services like Telstra, Optus, Vodafone and New Zealand providers like Telecom, Vodafone NZ and 2degrees.

Both governments have requested comments on the discussion paper, which are to be submitted by 2 July 2010.

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