2degrees complains over Telecom's locking of new phones

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.     Full Read