Consumer NZ welcomes the Commerce Commission’s announcement that telcos will have to front up and give mobile phone customers decent information on exactly what they’re paying for.

Commerce Commission’s Telecommunications Commissioner Tristan Gilbertson says New Zealand’s three main mobile operators have agreed to provide more information and tools to support consumer choice.

“Last year we challenged mobile operators to make it easier for consumers to compare and choose the best plan for them. Since then, we’ve worked collaboratively to agree three key measures that will significantly improve outcomes for consumers,” Tristan says. 

Under commitments outlined in an open letter published by the Commission today, the three mobile operators will:

• provide at least 12 months’ usage and spend information to their customers
• provide an annual usage and spending summary to their customers including a prompt to consider whether they are on the right plan
• promote the development of comparison tools including a prospective consumer data right (CDR) to make it easier for customers to compare plans and providers.

“Consumers want easy access to their information so they can choose the best provider and plan – and they want tools to help them do that – so this is a big step in the right direction for competition and consumer choice,” Tristan says.  

As a result of these commitments, by the end of 2021, the Commission expects that consumers will gain access to 12 months’ usage information in an easy-to-follow format, receive an annual summary of their usage and spend with a prompt to make sure they are on the right plan, and have access to a comparison tool to help them compare and choose.

“This is the first initiative in the Commission’s new drive to improve retail service quality in telecommunications. 

“We’ve worked with industry to identify improvements that will make a real difference for consumers. 

“There is more work to do in this space but I’m really delighted that we are off to such a positive start,” Tristan says. 

The Commerce Commission expects expects consumers will now gain access to 12 months’ usage information in an easy-to-follow format, receive an annual summary of their usage and spend

Consumer NZ chief executive Jon Duffy says mobile phone bills provided by Spark and Vodafone didn’t provide customers with a breakdown of usage and limited information was given on the companies’ apps.

“Without good information on usage and spend, it’s much harder for consumers to work out whether they’re getting value for money,” Jon says. 

“The upshot is consumers can be paying much more than they should. That’s something we’ve found when we’ve looked at customers’ bills.”

This week’s announcement means Spark, Vodafone and 2degrees will have to provide at least 12 months’ usage and spend information to mobile customers. This information is expected to be provided by the end of October.  

The telcos will also have to provide an annual summary, which includes a prompt for customers to consider whether they are on the right plan.

In addition, telcos are expected to support the development of  tools that allows consumers to easily weigh up plans.

“Giving customers decent information on their usage is essential to ensuring the mobile market works well. We’re pleased the industry has acknowledged this and has agreed to make changes,” Jon says. 

A suitable comparison tool, provided it was independent, would also help consumers navigate the market and make informed decisions about what plan is best for them.   

Jon says Consumer NZ would be closely watching the industry’s progress.

“If these changes are done well, there will be real benefits for consumers. It should be much easier to see whether you’re really getting bang for your telco buck.”

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