29 Sep 2010

Workshop to be held on mobile termination rates

7:31 am on 29 September 2010

The Commerce Commission will concentrate on regulating wholesale prices at a workshop on mobile termination rates next week.

Last month, the Government accepted regulation of the cost of switching mobile phone calls between networks, saying it will improve competition and result in lower prices for users.

The commission says it's appropriate the focus should be on wholesale prices, and not operational arrangements and technical specifications, as that is a key driver of high mobile retail prices in New Zealand.

The commission is open to the setting of rates benchmarked against future pricing; so called bill-and-keep pricing where rival networks agree to end calls from each other at no charge; or a hybrid bill and keep option.

The workshop will discuss the commission's proposed approach to regulation, and whether fixed line-to-mobile and mobile-to-mobile calls should have a single price list.