‘Flat rate may negate spirit of competition’
MCMC'S DIRECTIVE: Minister says move will also violate Competition Act 2010 regarding price fixing
Fixing a flat rate for all calls across telecommunication companies may negate the spirit of competition, said Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.
He said companies, from the business perspective, offered different packages and prices to attract consumers.
"If the telecommunication companies were to agree on one similar charge for all calls, it may contradict or violate the Competition Act 2010, which stipulates that companies cannot collude to fix prices," he said after the launch of a "Back to School Sale" at Bandar Tun Razak yesterday.
He suggested that it was better to allow telcos the freedom to determine their own charges and compete for customers via pricing.
"Competitive pricing will be good for consumers as companies will be encouraged to offer lower rates or award more gifts and benefits to consumers when they see what other companies have to offer," he said.
Ismail was commenting on a call by the Federation of Malaysian Consumers Associations (Fomca) to set a single rate for all calls.
On Monday, the Malaysian Communications and Multimedia Commission (MCMC) had directed telecommunication service providers to review "access prices" for their wholesale facilities and services from January 1 next year.
The directive was made following the feedback the commission received from a public inquiry that was carried out from October 1 to November 14 this year.
MCMC chairman Datuk Mohamed Sharil Tarmizi had pointed out that the reduction in access prices (fees paid by one telco to another to connect a call) should have a desirable impact on consumers.
He added that it would result in lower retail rates for consumers in the long run.
The commission had also wanted service providers to lower prices for transmission services, especially in Sabah and Sarawak, in hopes that it would make telecommunication services more affordable.
Meanwhile, on the "Back To School Sale" launch, Ismail Sabri said the sale, which had been limited to Putrajaya in past years, would be organised nationwide this year.
Uniforms, shoes, stationery, bags, sports attire and other educational materials will be on sale at discounted rates of up to 50 per cent by the 131 participating retailers.
Source : New Straits Times
Date : 21 December 2012
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