CommComm pushes ahead on mobile termination rates

The Commerce Commission intends to push ahead with mobile termination rate recommendations after mobile companies failed to reach an agreement.

The Commerce Commission is looking to push ahead on recommendations for mobile termination rates, after an attempt to get Telecom, Vodafone and 2degrees to reach an acceptable agreement among themselves failed.

Mobile termination prices are the wholesale charges mobile phone companies charge for terminating calls or texts from other fixed or mobile networks.

The commission has said its preliminary finding is that the charges are now "significantly" above cost.

Last month the commission invited the three companies to talk to each other to see if they could reach consensus on reciprocity on prices and other terms.

Since then 2degrees' nominated counsel has advised the commission that discussions had not reached an agreed position between the three parties.

The commission has now asked the three companies to submit any further revised undertakings they want considered by December 15.

Telecommunications commissioner Ross Patterson said the commission intended to complete its analysis and make its recommendation to the Government in a final report early next year.

Telecom and Vodafone did send the commission an aligned proposal last month, but the commission said that proposal continued to reflect rates which were not, in the commission's preliminary view, capable of being recommended for acceptance.

The rates in the aligned proposal would not sufficiently address concerns about removal of barriers to efficient entry.

The Telecom/Vodafone aligned proposal had not adopted a proposal made by Telecom in a letter to the commission in late October, Dr Patterson said.

Instead, under the Telecom/Vodafone proposal Telecom would align its undertaking at higher voice rates and text rates proposed by Vodafone.

The voice rates in Telecom's October proposal were above the range of the commission's benchmarks, Dr Patterson said.

But the commission's preliminary view was that on the whole the voice and text rates in Telecom's October proposal appeared likely to generate broadly sufficient benefits when compared to regulation, that they could be closely considered for recommendation for acceptance.

In a statement today, Telecom said it remained committed to a self-regulatory outcome that would deliver lower mobile termination rates over time.

Telecom group counsel Tristan Gilbertson said Telecom welcomed the commission's indication of support for the rates Telecom proposed in October.

Telecom remained willing to move mobile termination rates to levels signalled by the commission if a self regulatory outcome could be secured, Mr Gilbertson said.

- NZPA