The Commerce Commission today warned telecommunications companies that unwarranted delays in introducing number portability may breach the Commerce Act.

Number portability allows customers to switch from one telecommunications company to another without having to change their telephone numbers. This is of particular importance to business customers, because having to change their telephone numbers is usually a significant problem for them.

Commission Chairman Dr Alan Bollard told a telecommunications industry conference in Auckland that number portability is currently the main competition issue in the industry. It is the platform on which competition in the industry can further progress.

"The Commission is of the view that unwarranted delays in introducing full number portability to the New Zealand marketplace effectively hamper competition developing in the telecommunications sector, and such delays have the potential to breach section 36 of the Act," he said.

Dr Bollard also reiterated that it is customers who stand to benefit from increased choice and competition.

"Delays in establishing workable arrangements for number portability which lead to lessened competition, whether occasioned by an incumbent unreasonably delaying agreement or entrants taking unreasonable positions precluding agreement, are harmful not only to providers, but also to consumers interests," he said.

"The Commission believes that some parties involved in number portability negotiations are taking extreme positions and need to realistically reassess their positions.

"Up till now the Commission has been of the view that its direct involvement would be unlikely to assist the commercial process. However, the Commission will continue to closely monitor the situation and parties' conduct, and it may change its view on involvement."

The Commission is also concerned that unclear property rights as to who owns and controls New Zealand's telephone numbers is impeding the progress of number portability.

It accepts that ownership of the numbering system is a complex issue, but it wants to see private negotiations resolve this issue quickly.

This too is an area the Commission is watching closely. If progress is not made, it may have to become involved more directly.

However, Dr Bollard said that there are positive signs that, despite the positions taken, progress is being made.

"All parties in the TNAG (Telecommunications Numbering Advisory Group) process have expressed acceptance of number portability as a general principle which will benefit competition and the consumer."

The issue for the Commission is how quickly the companies turn their acceptance of the general principle into a practical solution that benefits consumers with more choice and more competition.

It is better for all that the solution is found through commercial negotiations. However, if that proves unsatisfactory, then the Commission will have to consider becoming involved.

Copies of Dr Bollard's speech are available from reception at the Commission's Wellington office, Level 7, Landcorp House, 101 Lambton Quay.

Media contact: Communications Officer Vincent Cholewa

Phone (04) 498 0920