6 Nov 2008

More regulation tipped for telcos

3:23 pm on 6 November 2008

The telecommunications industry is facing more regulation as the Commerce Commission seeks to improve access to the mobile market for new entrants.

The commission is investigating whether mobile termination access services, which is the rate one mobile operator charges rivals to connect to its network, should be regulated.

The commission says there are reasonable grounds to consider regulating mobile termination. One of those is that New Zealand companies appear to be charging significantly more than what it costs to provide the service.

The commission says it will consider whether the above-cost mobile termination rates are a barrier to new entrants wanting to enter the mobile market.

The commission is also considering whether to investigate regulating the national mobile roaming service, which would allow a new entrant to use another company's network while building its own.