Commerce Commission asked to reconsider mobile termination

, posted: 27-Apr-2010 09:12

The Minsiter of Communications has just released this statement - we'll have a response shortly.

Communications and Information Technology Minister Steven Joyce has asked the Commerce Commission to reconsider its recommendation on mobile termination access services. 

On 22 February 2010, the Minister received the Commission’s final report on mobile termination access services.  In that report, the Commission recommended the Minister accept the offers put forward by Telecom and Vodafone in lieu of regulation.


“In a letter to me dated 19 April 2010, the Commerce Commission indicated that a new retail offer launched by Vodafone on 13 April 2010 may be material and may have the potential to affect the basis for the Commission’s recommendation,” says Mr Joyce.


“Under Section 19 of the Telecommunications Act I am required to make the decision that best gives, or is likely to best give, effect to the purpose of the Act – that is to promote competition in the telecommunications market to the long-term benefit of end-users of telecommunications services,” said Mr Joyce.  “I consider that requiring reconsideration in these circumstances meets this test.”


“I would like the Commission to consider any relevant retail offers released since their report was sent or that may be released before they finalise their reconsidered advice, and the implications (if any) that those offers have on the recommendation that I accept undertakings put forward by Telecom and Vodafone.”


“While the Telecommunications Act does not require the Commission to report back to me within a specified timeframe, I am keen to see decisions around mobile termination access services made as soon as is practicable and appropriate.”


The Commission's processes are set out in Schedule 3 of the Telecommunications Act.

Other related posts:
Of termination rates and regulatory holidays
Minister recommends regulation - Vodafone's response
Vodafone's response to the Commerce Commission's report

Comment by Chris, on 27-Apr-2010 09:21

Oh for fuck sake

Comment by Chris, on 27-Apr-2010 09:25

Oh well, we have 18 more months with the current MTRs that is good because it gives the 3 networks time to invest more and more competition during the next 18 months. So now we have another 18 months with current MTRs

Author's note by jointhedebate, on 27-Apr-2010 09:28

I would hope it wouldn't take that long but yes, it does seem to defeat the purpose.

The Minister has asked the Commission to specifically and only look at the retail price. Hopefully that will deliver a speedier recommendation.

Comment by Chris, on 27-Apr-2010 09:31

And after 18 months the competition will have really heated it, There should be no need for further investigating .

Comment by ockel, on 27-Apr-2010 09:36

Doesnt that means more time with the existing agreed glidepath?
And 100% pass thru to retail rates as agreed by Telecom and Vodafone?

IF that is the case then will the Commerce Commission claim success in lower pricing (and high pass thru) due to competition?  Or that the agreement between the two telcos and the previous Minister is the reason for lower pricing?

Comment by Chris, on 27-Apr-2010 09:52

Well congrats, Your company's Talk add-on has delayed the investigation giving time for competition, Very good

Comment by Chris, on 27-Apr-2010 10:00

competition without regulation that is

Comment by simon14, on 27-Apr-2010 11:08

If this was Vodafone's plan all along, I must say I'm very, very impressed!

It surely won't take 18 months though, the Minister would have to be stupid to bother with that. I'd rather they just accepted the telcos offerings than wait another 18 months.

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Paul Brislen
New Zealand

You’ll have heard about mobile termination rates and how the Commerce Commission is investigating whether or not to regulate them. But what is a mobile termination rate, how does it work and why is it so important?

In this blog, we’ll try to answer your questions, tell you a bit about what we think and keep you up to date with the Commerce Commission and its process.

Recent comments

jointhedebate on Of termination rates and regulatory holidays: @StevenON, it's not MTR that introduces on-net/off-net pricing - it's marketing....

jjero on Of termination rates and regulatory holidays: You quote the amount of people in the public that think there won't be a substan...

grant_k on Of termination rates and regulatory holidays: This spectacle of Vodafone crying over spilt milk makes me about ready to puke.....

SteveON on Of termination rates and regulatory holidays: I spent a little time looking @ VF Ireland and am very surprised at their lack o...

jointhedebate on Of termination rates and regulatory holidays: @langi27 you're not required to read it - this is a place where we wanted to tal...

langi27 on Of termination rates and regulatory holidays: I don't understand why you continue to try to convince the public that your stil...

jointhedebate on Of termination rates and regulatory holidays: @rewa, that's a different kind of termination rate. You pay an early termination...

ockel on Of termination rates and regulatory holidays: @dannywii - the US is the biggest smartphone market in the world (by share - see...

rewa hard on Of termination rates and regulatory holidays: I agree with dannywii and I have had a number of corporate accounts with Vodafon...

jointhedebate on Of termination rates and regulatory holidays: In order:@myndlyz We have 49c/minute calling and we also offer $6/month call and...

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