NZ telco shows mobile roaming rip-off truth

If anything highlights the rip-off nature of global roaming rates, it must be the decision of Kiwi mobile operator 2degrees to slash its trans-Tasman data roaming rates by 90 per cent.

Calling rates are also reduced, with calls to Australia now the same rate as for local calls!

2degrees denies it has been spurred by regulators at both sides of the Tasman recently launching a "formal investigation" into whether consumers are paying too much.

But surely, if the price of something suddenly drops 90 per cent like it has here, there must have been lots of rorting of customers beforehand.

The telcos have previously blamed charges from foreign telcos as the cause behind such excessive data roaming rates.

However, 2degrees says it has managed to negotiate lower prices with them. If a small player with little market power like 2degrees can negotiate "90 per cent off" and likewise, then so can the big boys with their much greater market share.

We have heard much about "bill shock" and the excessive charges made on customers, with the $1800 bill "experiment" from Paul Brislen, boss of the Telecom Users Association of New Zealand, being one of the latest.

Brislen notes that even the lower data roaming rates from 2degrees are still 50 times more than local rates, suggesting that a lot of profit is still being made.

Indeed, such profits are still likely to be "excessive".

Let's hope that other telcos follow. At least, if they don't, 2degrees' actions have shown there really is need for regulation.