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NZ Commerce Commission split on mobile charging regime

IT Policy - Regulation

New Zealand's competition watchdog, the Commerce Commission, has been unable to agree on whether to regulate the prices charged by mobile operators to terminate calls coming in from other networks.

In the final report of its long running investigation - delivered to communications minister Stephen Joyce today - telecommunications commissioner, Dr Ross Patterson, has recommended that the minister accept Telecom NZ's and Vodafone's final undertakings as an alternative to regulation. Associate commissioner Gowan Pickering's view agreed with Patterson. Commissioner Anita Mazzoleni favoured regulation.

New entrant, 2degreess, had made undertakings but subsequently withdrew them all.

Joyce issued a statement saying "I am inviting comments on any matters raised in the report that were not, and could not have been, raised in previous submissions to the Commission, and on any relevant information that is not addressed in the Commission's report."

The decision disappointed the users organisation, TUANZ. CEO, Ernie Newman, said: "While we recognise the enormous amount of consultation and research that has gone into the Commission's investigation over these past six years, we think the Commissioners have got it wrong...The process leading to the voluntary undertakings demonstrated the breathtaking gap between the actual cost of terminating calls from competing networks, and the amount the two major operators have been charging. While the reduction of about 80 percent appears generous on the surface it is still insufficient to address the huge barrier to competition posed by these excessive charges.

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