Next step underway for the determination of mobile termination rates

The Commerce Commission has today issued a notice to Vodafone New Zealand Limited to prepare a standard terms proposal for terminating mobile calls and text messages. This proposal will specify the non-price terms and conditions on which mobile termination services should be made available to both mobile and fixed line operators. The price of the mobile termination access services (MTAS) will be specified by the Commission.

The issuing of the notice follows the Commission's industry scoping workshop on 6 October 2010.

Vodafone is required to submit the standard terms proposal by 5pm, on 5 November 2010.

The Commission will then seek submissions before issuing a draft standard terms determination. Following the release of the draft determination, the Commission will engage in further industry consultation, after which a final determination will be made.

Once finalised, the mobile termination access services standard terms determination will specify the regulated prices and terms and conditions for the supply of the mobile termination access services.

Background

Under the Telecommunications Act 2001, the Commission can only commence a standard terms development process for services that are specified in Schedule 1 of the Act.

On 16 June 2010, the Commission recommended in its reconsideration report that the Minister allow for the regulation of mobile termination access services (including the price for those services) by adding the services to Schedule 1 of the Act, and to reject undertakings offered by Telecom and Vodafone in lieu of the proposed regulatory change.

On 4 August 2010 the Minister for Communications and Information Technology, Steven Joyce, announced that he had accepted the Commission's recommendation to amend the Telecommunications Act 2001 to allow the regulation of mobile termination access services.

The mobile termination access services were added to Schedule 1 of the Act as a result of the Telecommunications (Mobile Termination Access Services) Order 2010, which came into effect on 24 September 2010.

Subpart 2A of Part 2 of the Act specifies the process the Commission is required to follow in making a standard terms determination, which sets the terms on which a designated access or specified service must be supplied with reference to all access seekers and access providers of the service.

The indicative timeline for the standard terms development process is as follows: