NZ-Australia governments launch combined mobile roaming investigation

UPDATE THURSDAY 11.55am: New Zealand and Australia have launched a formal investigation into the transtasman roaming services provided by the two countries’ mobile operators.

Telecommunications Users Association (Tuanz) boss Paul Brislen welcomed the move. 

"The idea that we should pay 3,000 times the standard rate for data when traveling abroad is ludicrous and amounts to nothing more than daylight robbery," said Mr Brislen - who was recently handed an $1800 bill after a few days of average mobile phone use in Sydney.

The announcement came at the Kanz summit in Tasmania, where New Zealand communications minister Steven Joyce has been meeting with his Australian counterpart, senator Stephen Conroy.

The two ministers’ decision to proceed was based on analysis of traffic and revenue information provided by the operators as well as views expressed by respondents to the May 2010 consultation.

“Our view is that, on the basis of the information before us, it is reasonable and appropriate to undertake a full market investigation,” said Mr Joyce.

Regulatory intervention
“Many New Zealanders take their mobile phone, tablet or laptop with them when they travel to Australia. They need to have confidence that they are purchasing services in a competitive market. If this investigation finds they are not, then regulatory intervention will be considered."

The investigation will be conducted by New Zealand’s Ministry of Economic Development (MED) and Australia’s Department of Broadband, Communications and the Digital Economy.

As part of the investigation, the two governments will release a draft decision outlining their conclusions on the state of competition and, if appropriate, their preferred options for action. The draft decision will be made available publicly for comment before a final decision is made.

The two governments expect to release their final decision in early 2012.

Christchurch-based consultant and commentator Ben Kepes - who was invited to Kanz to brief Korean, NZ and Austrlaian ministers on cloud computing developments - described the interaction between Mr Joyce and Labor Senator Conroy at this morning's session as "cosy".

According to an MED Q&A, "Once the investigation with Australia is complete, the government may consider the appropriateness of working with other countries to evaluate the competitiveness of roaming services on other bilateral routes."

DATA ROAMING TO AUSTRALIA
Telecom: $1/MB first 100MB* (NBR rating: expensive)
Vodafone: $5/MB (NBR rating: nosebleed expensive)
2degrees: $30/MB (NBR rating: heart-stoppingly expensive)

* Data beyond 100MB will be charged at the eye-poppingly expensive rate of $8 per megabyte

WEDNESDAY: With domestic mobile price regulation in the bag (a final determination on MTR will be released tomorrow), cheerfully interventionist communications minister Steven Joyce is heading across the Tasman to discuss the "bill shock" suffered by mobile phone-packing travellers.

Mr Joyce first discussed the issue with his Australian counterpart Senator Stephen Conroy in May last year. Since then, the MED and ACCC have been investigating the sky-high cost of using your mobile phone when travelling to either side of the Tasman.

The two communications ministers will discuss their unprecidented transtasman investigation over the next two days as part of the biannual Korea Australia New Zealand (Kanz) summit in Tasmania. The gabfest will cover a range of broadband and telecommunications issues.

"New Zealanders have expressed concern that the prices charged for international mobile roaming, and in particular data charges, are excessive and that pricing transparency and consumer awareness of prices is low -- leading to 'bill shock', the minister said.

"With the greatest volume of roaming traffic occurring between New Zealand and Australia -- approximately one million visitors travel annually from each country to the other -- it is appropriate that we look at the market."

With the Mr Joyce now having expressed vague disapproval at roaming rates for almost a full year - and said rates remaining in the stratosphere - is there any timetable for a formal Commerce Commission (and ACCC) investigation to begin? (Remembering that the ComCom and the ACCC are now cross-pollinated.)

The minister's office had no immediate response. The minister himself was in the air, en route to Tasmania - the state that saw the first fibre laid as part of Australia's National Broadband Network.