NZ regulator moves on mobile rates

Summary:Telco authorities in New Zealand have recommended the regulation of mobile termination rates, rejecting voluntary undertakings from Vodafone and Telecom NZ.

Telco authorities in New Zealand have recommended the regulation of mobile termination rates, rejecting voluntary undertakings from Vodafone and Telecom NZ.

"The Commission considers that cost-based mobile termination rates, when compared to the offers in the undertakings, will better promote competition in the mobile market and will be in the best long term interest of end users," said Dr Ross Patterson, Telecommunications Commissioner.

Dr Patterson added that call plans, such as the now withdrawn Talk Add-on product from Vodafone, which gave on-net users 200 minutes for $12 a month, might seem beneficial to consumers, but actually make it harder for new telco entrants.

Today's Commerce Commission announcement overturns an earlier split recommendation for voluntary regulation, but the Talk Add-on product from Vodafone, with much reduced on-net pricing, fuelled many calls for regulation of mobile termination rates.

ICT Minister Steven Joyce has called for submissions on the Commerce Commission decision by 29 June and cross submissions by 6 July. However, no timeframe has been given as to when Minister Joyce will make his final decision on whether to regulate.

Topics: Mobility, Telcos

About

Darren Greenwood has been in journalism, not all of it IT, since the days of typewriters and long before the web spun its way around the world.Coming from Yorkshire, he can be blunt, and though having resided in New Zealand, as well as Australia, for quite some time, he insists he is not one of the 'sheeple!'

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.