NZ regulator pushes for ‘easier’ mobile and broadband comparisons

New Zealand’s competition regulator The Commerce Commission is seeking feedback on proposals it says would make it easier for Kiwi consumers to compare telecommunications products and providers.

According to Telecommunications Commissioner, Tristan Gilbertson, the difficulty of comparing plans and providers is a major factor behind customer dissatisfaction and complaints – and he says this needs to change so consumers can more readily make comparisons to get the best deal for them.

Commissioner Gilbertson says this consultation – part of the Commission’s wider drive to improve telecommunications retail service quality – focuses on making offers, costs, contracts and coverage more readily comparable between competing mobile and broadband providers.

“Competition between different technologies and providers is delivering more choice than ever before – but it’s not always easy to compare different plans and providers on a like-for-like basis,” Gilbertson says.

“We don’t want consumers signing up for one provider’s offer because it wasn’t easy for them to compare it with other offers that might have been better for them. For this reason, we’re proposing a more standardized approach to marketing information so consumers can make more confident choices about their connectivity.”

The Commission says it wants to see upfront disclosure of key information including:

• The average monthly cost of services – consumers need to know, for example, that signing up to a 28-day plan means they pay 13 times a year, rather than 12
• The cost of energy services included in broadband bundles – consumers need to know whether electricity and gas charges in these bundles are higher than market rates, because this can quickly reduce the benefit of any upfront broadband discount
• The total costs of the contract – consumers need to be given a summary of all the costs relating to a deal, before signing-up, so there are no surprises later
• Mobile coverage – consumers need to be given comparable coverage information so they have a clear view of what service they can expect with different providers at their location.

The Commission says it also wants providers to produce standardized contract summaries so that comparing services is easier, and to standardize the way they calculate and report on their customer numbers, ensuring a more accurate reflection of competition in the market.

“We think these improvements to telecommunications marketing will enable consumers to make more meaningful comparisons and informed choices. We welcome feedback from everyone, including industry, consumer groups and consumers, so we can start putting the right solutions in place,” Commissioner Gilbertson concluded.

The consultation paper and information on how to provide feedback can be found on the Commission’s website and submissions are due on December 7, 2022.

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