Telecoms say critical views positive news
WELLINGTON: The industry body representing telecomunnication companies is pushing back against suggestions that consumers are being overcharged for mobile plans they do not need.
The comments follow the Commerce Commission publishing an open letter, telling Spark, Vodafone and 2degrees they needed to step in to stop customers spending more than they need to for mobile services.
The commission reviewed 80,000 consumer bills and found about a quarter were on mobile plans that cost more than the actual usage was.
The research showed that twothirds of consumers did not change plans during the 12month review period and found that 7% of all residential customers could save an average of $48.65 a month if they switched to a more appropriate plan.
‘‘We want to see the industry catch up to other sectors, like electricity, where consumers and comparison websites are making good use of the ability to compare usage and pricing,’’ telecommunications commissioner Tristan Gilbertson said.
‘‘We expect the operators to address these issues by increasing the usage information available to consumers and implementing measures to help keep consumers on plans that best reflect their actual requirements.’’
The commission wanted the industry to improve transparency, empower customers to make better choices and asked the Telecommunications Forum (TCF) to look at the possibility of an industrywide consumer data right.
Forum chief executive Geoff Thorn questioned the conclusions the commission drew from the data.
‘‘[The data shows that] about a quarter of people could be on a different plan but that also indicates that threequarters of consumers are actually on a plan that suits them.
‘‘You cannot just make assumptions about what plan consumers are on, they will choose a plan for a whole range of reasons.’’
He said the high churn rate in the industry suggested consumers were already shopping around to find themselves the best deals.
‘‘At the end of the day you’ve got to look at the overall picture that the letter provides.
‘‘We welcome the letter and we will work with the commission and the TCF will work with the industry to see how we can improve transparency but when you look at the level of churn across the industry, 36% of consumers are churning.’’
Consumer NZ chief executive Jon Duffy said one recommendation in their report was that telcos should be encouraged, or even forced, to allow consumers to share their data history with other providers to suggest another more suitable plan.
Mr Thorn said the Telecommunications Forum had not yet looked at introducing a consumer data right into the industry, but it was something it would consider. — RNZ