High transtasman roaming costs crimp business - Joyce

Telecom, Vodafone and 2degrees don't have to read the tea leaves too hard to guess transtasman roaming regulation is on the way.

Communications Minister Steven Joyce said today that four out of five New Zealand businesses surveyed say the costs of data roaming is prohibitive to their staff doing business in Australia.

The Minister released the results of a survey from the Ministry of Economic Development which asked New Zealanders and New Zealand businesses how they stay in touch when travelling across the Tasman.

The survey of 534 New Zealanders travelling to Australia was carried out between July 2010 and January 2011 and informed the decision of the New Zealand and Australian governments to conduct a joint investigation into whether regulatory intervention is required in the trans Tasman roaming market.

Limits on smartphone, tablet and laptop internet use
The MED survey  found limits placed on staff wanting to use their smartphones, tablets and laptops to access the Internet was one of the significant findings.

“I am concerned at the number of business respondents who indicated that, because of the cost, they encourage staff to use data roaming only if they really need to,” said Mr Joyce.

The majority of Kiwi businesses surveyed also encourage staff to minimise calling and texting when in Australia.

Preemptive moves
Telecom, Vodafone and 2degrees have sought to head-off the investigation by slashing data roaming costs - from a previous high of $30 per megabyte to as low as $1 per megabyte. That's much cheaper than before, but still a head-spinning $1000 per gigabyte - at a time when domestic mobile data can cost as little as $20 per gigabyte (and landline broadband closer to $1 per gigabyte). 

The alternative - switching SIM cards and phone numbers each time you hop across the ditch - is clumsy and technologically backward.

Cuts noticed
Mr Joyce says he is hopeful that improvements in data roaming prices announced by some operators in recent weeks will go some way to alleviating this problem, but that the joint investigation will proceed.

“The results of the survey will provide useful information that will help us determine whether roaming services are competitive."

Not good enough
Speaking to NBR after 2degrees cut its transtasman data rate to $2.50 a megabyte (or $1/MB if you buy in pre-pay chunks), NZ Computer Society boss Paul Matthews said, "The current level of roaming charges make it very difficult for business conducted between the two countries, not to mention catching many other travelers unawares.

"We're very much looking forward to the result of the joint Australia/New Zealand governmental review which will hopefully see the introduction of acceptable roaming packages between the two countries."

Telecommunications Users Association chief executive Paul Brislen - who recently racked up an $1800 bill for using his phone under average conditions for less than a week in Sydney - has told NBR his organisations recommends its members don't use their mobiles overseas. Tuanz also backs the investigation, and possible regulation.