The Commerce Commission is requiring mobile network operators to make it easier for Kiwi consumers to compare coverage between providers, and to exit without penalty if they run into coverage problems.
"Coverage is a key consideration for consumers but can vary considerably across networks. It's never 100% everywhere. Too many Kiwis are signing up to find that they're not getting the coverage they expected – so we've been working with stakeholders on how to help consumers make more confident and informed choices," said Telecommunications Commissioner, Tristan Gilbertson.
Mr Gilbertson said the outcome of this engagement is a roadmap that will see mobile providers:
- Standardise key components of their coverage maps to make them more comparable;
- Make coverage maps and related information easier to find on their websites; and
- Provide a clear 'exit right' when consumers find a material difference between what a coverage map shows and their real-world experience.
To improve comparability, the Commission has asked mobile providers to agree a standard set of coverage descriptors – such as 'excellent', 'good', 'fair' and 'no coverage' – and signal strength thresholds for each of these coverage levels.
Mr Gilbertson says this will provide a more consistent view of the quality and reach of coverage across networks. The Commission has also asked mobile providers to present all other information on coverage maps in a more consistent way.
"To improve accessibility, we've asked mobile providers to ensure consumers can access coverage maps within two clicks from the provider's homepage and provide links to maps in collateral related to coverage or plans. This will make it easier for consumers to find coverage maps when they need them.
"Consumers also want to be able to choose their provider without running the risk of being locked-in if they encounter an unexpected coverage problem."
To prevent lock-in issues, the Commission has asked mobile operators to ensure they have an 'exit right' for consumers who join but find that their actual coverage doesn't match that promised in a coverage map.
"One NZ and 2degrees already offer this in the form of a 'network guarantee' for their new customers and we'd like to see this offered across the board by all providers. That will enable consumers to choose and switch more confidently, knowing they can leave without cost if the promised coverage isn't there."
The Commission expects mobile network operators to work together on standardising their maps within 12 months, with regular reports on progress, and for each individual mobile provider to deliver accessibility and 'exit right' requirements within six months.
"We're pleased to have landed a series of improvements that build on existing industry practices to enable better comparison and choice for consumers," says Mr Gilbertson.
Background
Coverage refers to areas where the signal provided by a mobile network is strong enough to use mobile services (including voice, SMS and data). The coverage provided by each mobile network varies. These differences make it important for consumers to understand what coverage looks like in the locations that matter most to them when choosing a provider. To help consumers understand this, mobile providers produce coverage maps using sophisticated models specific to their networks, to indicate where their services are available.
The Commission's latest Telecommunications Consumer Satisfaction Monitoring Report published last week shows almost 20% of residential consumers and 30% of SME consumers are not satisfied with their mobile coverage. In the last 6 months 10% of residential consumer and 16% of SME consumers had an issue with their mobile coverage. Of those that had switched provider, 25% chose their new provider because they claimed to have better coverage than their old provider.
Consumers have told the Commission that they would like to use coverage maps more often to help them choose a provider – but the lack of consistent information makes this difficult and means maps are not reliable at highlighting coverage and performance at locations that matter to them. The Commission's online survey conducted last year shows 81% of consumers would find it helpful if all telcos had to show a coverage map that was consistent across the industry.
