The Commerce Commission has today released a letter outlining its indicative process and timeline to reconsider its recommendation in the mobile termination access services investigation that undertakings from Telecom and Vodafone should be accepted as an alternative to regulation. The Commission expects to complete the reconsideration process by early June 2010.

The Commission is undertaking this process following a request from the Minister for Communications and Information Technology under the Telecommunications Act 2001 that the Commission reconsider its recommendation.  

The Minister has requested that the Commission consider the implications, if any, of any relevant retail offers on the Commission's recommendation that the Minister accept the undertakings put forward by Telecom and Vodafone. Retail offers to be considered are those that have been released since the Commission sent its report to the Minister on 22 February 2010, or that may be released before the Commission finalises its reconsidered recommendation.

"Given the limited focus of the reconsideration, the Commission expects to be able to complete the reconsideration process by early June 2010," said Telecommunications Commissioner Dr Ross Patterson.

"The Commission will issue a Draft Reconsideration Report and provide interested parties with an opportunity to submit on that report, before the Commission reports back to the Minister," said Dr Patterson.

The Minister's reconsideration request letter, the Commission's letter outlining the reconsideration process and related correspondence between the Minister and the Commission, and associated documents are all available on the Commission's website at www.comcom.govt.nz/mobiletomobiletermination/

Indicative Timeline for Reconsideration Process

MILESTONE

DATE

Minister requests reconsideration

26 April 2010

Commission advises interested parties of process and indicative timeline for reconsideration

27 April 2010

Deadline for interested parties to submit any relevant information for Commission consideration

5pm 3 May 2010

Draft Reconsideration Report released

12 May 2010

Submissions on   Draft Reconsideration Report due

5pm 19 May 2010

Cross-submissions due

5pm 26 May 2010

Final Reconsideration Report delivered to Minister

Early June 2010

 

 

 

 

 

Background

Mobile termination prices are the wholesale charges mobile phone companies charge for terminating calls or texts from other fixed or mobile networks.

Undertakings. Under the Telecommunications Act 2001, parties can submit undertakings, which are an offer of terms and conditions for the supply of a service as an alternative to regulation.

Requirements of the Telecommunications Act. The Act requires that the Commission makes a recommendation which best promotes competition for the long-term benefit of end users.

Reconsideration of Commission's recommendations. Under clause 6(2)(b) of Schedule 3 of the Act, the Minister can require the Commission to reconsider its recommendation or any aspect of its recommendation, for any reasons specified by the Minister.

MTAS investigation. On 6 November 2008 the Commerce Commission commenced an investigation under Schedule 3 of the Act into mobile termination access services (MTAS). The MTAS incorporates mobile-to-mobile voice termination (MTM), fixed-to-mobile voice termination (FTM) and short-message service termination (SMS). The investigation considered whether these services should become regulated services under Schedule 1 of the Act.

On 22 February 2010 the Commission recommended that the Minister accept undertakings from Telecom and Vodafone as an alternative to regulation.  

In April 2010 Vodafone launched a new Talk Add-on product offering up to 200 minutes to Vodafone New Zealand mobiles and landlines for $12 a month for certain pre-pay plans. This plan is promoted on Vodafone's website as "just 6 cents a minute to Vodafone NZ mobiles and landlines in New Zealand".