The Commerce Commission today released an issues paper on mobile termination. The Commission is currently considering whether there are reasonable grounds to launch a Schedule 3 investigation under the Telecommunications Act.

The issues paper follows a letter sent to the telecommunications industry in May 2008, asking for views on a possible Schedule 3 investigation.

Telecommunications Commissioner Dr Ross Patterson said, "The issues paper is part of the Commission's process in considering whether there are reasonable grounds for an investigation. On the basis of submissions received to date, the Commission considers that there may be reasonable grounds to commence an investigation into mobile termination, and is consulting further with the release of the issues paper."

Under the Telecommunications Act, if the Commission was to launch an investigation, companies may agree undertakings with the Commission. Dr Patterson noted that submissions on the issues paper would assist any party proposing to lodge an undertaking.

The Issues Paper is available on the Commission's website www.comcom.govt.nz under Mobile Termination Access Services.

Submissions on the issues paper are due on 5 September 2008.

Background

Mobile termination rates are the fees mobile phone companies charge other carriers to terminate calls on their networks, enabling mobile phone users to receive calls from different phone networks. Mobile termination charges are a significant contributor to the retail prices of mobile charges.

Schedule 3 of the Telecommunications Act.

Under Schedule 3, the Commission can undertake an investigation into whether or not a new telecommunications service should be regulated. The Commission will then make a recommendation to the Minister of Communications.