Telecom and Vodafone have offered further cuts in the cost of switching phone calls between networks in order to avoid regulation, but newcomer Two Degrees says they do not go far enough.
The Commerce Commission had asked the companies to align their proposed reductions.
The two big operators are offering to drop mobile termination rates from 15 cents to 10c by October next year, using per second pricing, and then annual declines to 6c per second by 2013.
For texts, prices will drop from 9.5 to zero as Vodafone and Telecom adopt 'bill and keep' models, where they bill their customers and keep the revenue.
Telecom says it can't promise that all the cut will be passed onto consumers.
Vodafone is not particularly happy, but says it's a deal it can live with.
Both expect the commission to accept their revised offer.
Meanwhile, Two Degrees says mobile termination rates are still well above costs and the timing of the proposed reductions is too slow.
