The Commerce Commission has received an application from Telecom Corporation of New Zealand Limited for clearance to acquire Cellnet Mobile Services Limited.
Commission Chairman Peter Allport said that the Commission should make its decision by May 15. Interested parties wishing to make a submission to the Commission on this proposal should do so by May 6.
Cellnet is a Telecom accredited service provider (TASP) owned by Fisher and Paykel Industries Limited. TASPs sell cellular telephone equipment and cellular connections to, and airtime on, the Telecom cellular network.
In the past, the service provider function for Telecom's networks has been provided by a number of independent TASPs, but in recent years the function has been increasingly taken over by Telecom itself. Cellnet is currently the only independent TASP.
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets. Parties can apply for a clearance, which will be granted if the Commission is satisfied that dominance is not acquired or strengthened.
The Commission must determine the relevant markets, the actual or potential constraints provided by companies such as Bellsouth and Telstra as competitors in such markets, and must assess the impact of the proposed acquisition on competition in all relevant markets.
Media contact: Commerce Act Manager Jo Bransgrove
Phone work (04) 498 0958
Communications Officer Vincent Cholewa
Phone work (04) 498 0920
Commission media releases can be viewed on its website www.comcom.govt.nz
