It's a split decision, but still goes in favour of the Undertakings ahead of direct regulation itself.
The Commission's press release is available in full here.
Quote from Dr Patterson:
“I have concluded that both regulation and acceptance of the final undertakings would address the competition concerns that the Commission identified. In my view, the long-term interest of consumers will best be served by applying the least intrusive means to address the competition concerns identified in the investigation. This will allow market forces to continue to operate in areas outside the scope of intervention.”
“The final undertakings from Vodafone and Telecom have offered mobile termination rates that are significantly lower than those offered in earlier undertakings. While these rates remain above the range of the Commission’s cost-based benchmarks, they address the competition concerns identified by the Commission, and my recommendation is that they be accepted by the Minister,” said Dr Patterson.
This is Vodafone's release on the announcement:
Vodafone welcomes Commerce Commission recommendation
Vodafone welcomes the Commerce Commission recommendation to accept the industry's commitment to reduce Mobile Termination Rates (MTRs).
The Commission has recommended the Minister of Communications accept the undertakings offered by Telecom and Vodafone in lieu of direct regulation. If the Minister accepts the recommendation the new termination rates will take effect from 1 October, 2010.
Vodafone New Zealand GM of Corporate Affairs Tom Chignell says the outcome is a pragmatic one given the uncertainty around a long regulatory process and whether the savings will end up in consumers’ pockets.
“We have always preferred commercial outcomes to regulation. New Zealand’s rates are broadly in line with Europe’s rates already and through this, and the previous investigation, the Commission has managed to elicit massive voluntary reductions in termination rates for voice and SMS.”
The Minister will now decide whether or not to accept the Commission’s recommendations and Vodafone urges him to make that decision so we can get on with the business at hand – making sure Vodafone customers have access to the best services on the country’s reliable 3G network.
Comment by Chris, on 22-Feb-2010 10:10
Ok, So Paul does this mean that you
will have to start charging for incoming calls/texts or because they accept your offer you wont loose out on more money if they wanted the MTR's cut further????
Comment by Chris, on 22-Feb-2010 10:47
Well just give us pricing like at&t have in the us, unlimited mobile to mobile nights and weekends, 500 mins anytime, unlimited texts, unlimited data, $70 per month
Comment by Chris, on 22-Feb-2010 11:03
Ha, You people were pretty fast to bring up Pay to receive calls/texts. I think it's what. you want us to pay to receive calls like in the US. and minimum monthly top ups. And how the hell can ya have a prepay contract???
Comment by Chris, on 22-Feb-2010 11:16
And also, why do the commerce commission say that the MTR' rates should be dropped so customers get cheaper calling? we have more competition now, Two Degrees is cheap, So why don't the com com drop the investigation into mtr and just advice people to go over to Two Degrees if they want cheaper calling???
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