Sharechat Logo

2degrees complains to regulator over Telecom 'sim-locking' plan

Friday 9th December 2011

Text too small?

2degrees, the country’s newest mobile operator, complained to the Commerce Commission after Telecom said it would impose “sim-locking” on customers of its new Skinny brand. 

2degrees asked the Commerce Commission to obtain assurances from all New Zealand mobile operators they will not sim-lock their handsets.

“This is not about better handsets – improved competition is already driving down the cost of feature-rich smart phones,” said Eric Hertz, chief executive at 2degrees. “This is a cynical move to lock in the most cost-sensitive consumers so they can’t make a choice,” Hertz said.

Telecom confirmed it will lock the phones of customers who buy its planned ‘Skinny’ product, forcing them to pay a fee if they want to leave. Customers on its XT network are exempt.

Hertz said customers should have the right to move between providers.

“We thought that this kind of monopolist behavior was a thing of the past, but there’s clearly still a need for consumer protection from dominant players,” he said.

2degrees grew out of a controversial government decision 10 years ago to give Maori the right to buy a third generation radio spectrum frequency at a discounted price. The remaining life of the spectrum management rights is about nine years.

2degrees shareholders include Trilogy International, Tesbrit and Hautaki Trust, who have provided ongoing equity capital to the start-up as it seeks to gain market share.

Telecom shares rose 2.2 percent to $2.12 a share.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Telecom Corporation of New Zealand (TEL)
Telecom in drive to latch on to growing data usage with 4G mobile launch next month
Telecom lines up to buy 700MHz spectrum to extend reach of 4G network
Telecom backs setting copper prices until 2020, warns against getting too far away from input cost
Telecom puts $60M price tag on new Auckland data centre, Hawkins, AECOM win build
Telecom ends jobs purge, looks for ‘more sophisticated’ ways to save money
Telecom FY earnings fall to bottom of guidance range, sees unchanged dividend in 2014
Telecom takes spat with Vodafone to regulator after dropping court action
Telecom unbundling key to regulator's copper conundrum
Telecom lures customers to faster services in EPL deal