NZ regulator defers mobile roaming investigation to assess benchmark rates

Friday 28th August 2009

The Commerce Commission has been given reason to pause its investigation into mobile roaming services after it accepted the benchmark rates it set were subject to debate, and Telecom Corp. expressed a willingness to offer roaming on its XT network.

The regulator stressed that there are “reasonable grounds” to investigate roaming services, but will wait until it has completed its investigation into mobile termination access services in September. The commission’s concerns were eased somewhat by both Telecom and Vodafone New Zealand offering commercial agreements for roaming, although some fears remain about Two Degrees’ ability to expand. The regulator also admitted its use of mobile termination rates as a proxy for roaming prices may have been hasty, and this will be reviewed in September.

“The residual concern for the commission is whether the levels of commercial roaming rates available to 2degrees are a barrier to expansion,” said Telecommunications Commissioner Ross Patterson, who returns after a leave of absence of almost a year. “The interim benchmarks will be a subject for debate the commission’s mobile termination conference in September.”

The regulator decided to proceed with an investigation into mobile roaming services, including price, in June following its decision regarding mobile termination rates.

At the time, Commissioner Anita Mazzoleni said the two services are related and “the Commission’s benchmarking for mobile termination is likely to inform its view on an appropriate price for national roaming in any Schedule 3 investigation.” The regulator also said it plans to align the two processes.

Telecom and Vodafone have been highly critical of the way the regulator’s stance on termination rates, accusing the commission’s benchmarking process of being flawed.

Telecom’s shares rose 1.9% to $2.76 in trading today.

Businesswire.co.nz

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