The Commerce Commission is seeking feedback on its draft decision to consider deregulating the Mobile Termination Access Services (MTAS) – which allow customers on one mobile network to communicate with customers on another via voice calls and text messages (SMS) at regulated rates.
Telecommunications Commissioner, Tristan Gilbertson, says changing consumer behaviour across the digital landscape means there is a case for considering the removal of regulation.
“The increasing popularity of alternative over-the-top (OTT) messaging services, such as Facebook Messenger and WhatsApp, mean that grounds may exist to consider the removal of SMS regulation.
“It’s also likely that these OTT alternatives, combined with a shift in the market away from voice calling and towards data services, mean that regulation of these services may no longer be necessary,” says Mr Gilbertson.
“Our investigation would focus on changes in the industry and competitive landscape and what is in the best interests of Kiwi consumers.
“If we were to proceed with removing MTAS regulation, this could take the form of complete deregulation, or a more progressive withdrawal of regulation, depending on the balance of competition and consumer interests,” says Mr Gilbertson.
The Commission is interested in hearing stakeholder views on whether there is a case for considering deregulation of MTAS including any views on an appropriate deregulatory pathway for these services.
Mobile Termination Access Services (MTAS) are wholesale services supplied by a Mobile Network Operator (MNO) which allows customers on other networks to communicate (either by way of a voice call or SMS) with customers of that MNO.
Before MTAS was regulated, each MNO had significantly cheaper prices for calls and SMS on its own network compared to those going to a customer of a different network. These higher prices hindered competition in creating a barrier to a new MNO attracting customers to its network. In June 2010 the Commission recommended to the Minster of Communications that MTAS be regulated with set prices to even the playing field.
MTAS became designated under the Telecommunications Act in 2010. The Commission is required to consider, at intervals of no more than five years, whether there are reasonable grounds for commencing an investigation into whether MTAS, could be deregulated. The last review was completed in September 2020.
Separately, the Commission can also initiate, at any time, an investigation into whether MTAS regulation should be altered, or review the price and non-price terms that apply to MTAS.
