Thursday, June 11, 2009

2degrees: I will not be part of the Empire!

By Benedict Wee

New mobile communications company 2degrees has resigned from a self-regulatory group that was supposedly set up to promote competition amongst New Zealand telcos. The Telecommunications Carriers Forum (TCF) works collaboratively on the development of key industry standards and codes of practices that underpin the digital economy of New Zealand. In short, they ensure that no one network provider has a stranglehold on the market and that there is fair competition amongst the other telecommunication companies. 

But 2degrees claims that TCF is set up and largely controlled by Telecom, Vodafone and Telstra, the three major players in the industry which means that they are financially inclined to support their own personal causes. Bill McCabe - 2degrees' Chief Commercial Officer- believes that the lack of effective competition and consumer choice continue to be the most pressing concerns of the Telecommunications Industry and that the TCF is not best placed to promote it:

"The stated goal of TCF is to promote competition for the long term benefit of New Zealanders, but its board is dominated by the three biggest incumbent networks whose financial incentives will be to maintain their dominance of the market. Any real promotion of competition by these firms would be counter-intuitive. TCF membership is therefore an unnecessary and time consuming distraction for 2degrees,"

With 2degrees accusing Telecom of employing bullying tactics previously, one can't help and come to the conclusion that the current telcos are trying to gang up to force 2degrees out of the telco business. It could be possible that they've seen the new company's price plans and are viewing them as a credible threat. 

2degrees News Site

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