Patterson's tricky fight for mobile fee solution

Ross Patterson runs regularly to "stay sane". Photo / Mark Mitchell

As the year rushes to an end, Telecommunications Commissioner Ross Patterson will spend the final weeks of 2009 deciding whether to regulate part of the mobile market.

The long-running investigation into mobile termination rates - the fee mobile phone companies charge each other to receive calls from competitors' networks - will conclude early in the New Year with Patterson recommending the Minister for Communications and IT, Steven Joyce, either accept a commercial deal between the telcos or regulate.

Patterson is open about his desire to get the three industry players - Telecom, Vodafone and newcomer 2degrees - to come to an agreed commercial arrangement rather than regulate.

"But if the undertakings don't deliver the consumer benefits we are looking for and acceptable share of those benefits, our judgment would be to regulate."

He admits the 18-month process has been fraught.

"I refer to it as walking on eggshells. Every step has to be very carefully considered. You've got to consult with everybody. You've got to be even-handed."

While Patterson said the termination rates investigation had not been the most challenging of his term he said the process where he donned a regulator's hat while dealing with commercial negotiations between parties with strong vested interests had had its challenges.

Add to that the fact that this particular issue, which Patterson said was "really just interconnection", had spilled over into the public domain more than any other handled by the commissioner.

2degrees and Vodafone in particular have been publicly vocal on their positions - 2degrees with its banding together of consumer advocates for the "drop the rate mate" campaign and Vodafone with its intense media lobbying.

"Because it's been highly publicised by the various parties, and they're quite entitled to do that, it's suddenly had a public profile as well ... It doesn't affect your decision in any way. It sort of creates a lot of noise, you can put it that way."

Patterson has now reached the halfway mark of his five-year term.

A New Zealander, he joined the commission from Sydney where he was a partner at Minter Ellison, heading up the competition and regulatory practice.

He replaced Douglas Webb, who became New Zealand's first Telecommunications Commissioner in 2002, just as the telecommunications landscape changed with the sweeping reforms of 2006's Telecommunications Amendment Act.

As well as forcing the operational separation of Telecom into three distinct business units, the commissioner's role changed from an arbitrator of industry disputes to taking a more proactive stance on issues.

He cites the commission's investigation into the allocation of phone numbers as an example looking at an issue before it became a source of major friction.

After undertaking a study of the current state of play and international best practice, Patterson has passed it back to the industry to work out a resolution.

"The consequence is that I'm confident we will achieve a model which the Ministry of Economic Development is happy with, the commission is happy with, that the interests of consumers is taken account of, as a result of a proactive stance by the commission," Patterson said.

He said the changes brought about by operational separation and the maturing of the industry had brought an end to the "playground fights" of not so many years ago.

"Telecom and Vodafone and others will robustly advance their commercial interest as is completely appropriate and do whatever they think is necessary to achieve that but I think there is respect, and that's the important thing I think, respect on both sides ... as long as you're open and even-handed, although they might disagree with your judgment, they won't believe that a decision has been made inappropriately."

An industry player described Patterson as "incisive", going on to say that Patterson understood what drove all the parties, working for results rather than the process.

Patterson splits his time between Auckland and a home he shares with his wife, and Wellington.

The routine has him in Auckland on Mondays and Fridays, mainly spent catching up with industry contacts, with the remainder of the week at the commission's Wellington offices.

He endeavours to keep his weekends free of work and while he might clock up 10 to 12 hours in the office when he is in Wellington, he schedules a more leisurely start time in Auckland. Patterson credits running "for keeping me fit and sane", regularly jogging for about an hour.

His private life has bubbled over into the public arena with the announcement late last year he was to take a leave to seek treatment for alcoholism. He was reinstated to the role in July and an industry insider said despite being away from the day-to-day regulatory machinations, hasn't missed a beat.

Another described him as like a breath of fresh air to the commission.

"His transparency and openness to debate and discussing the issues is really good," they said. "He's out there in the industry all the time talking about what he thinks about this or that. He's not afraid to let you know what his view is."

"I'm generally regarded as being forthright," said Patterson. "I've got a very open approach and a personal approach. The people in the industry, I think without exception, are great people so even when we disagree about things, and some of those disagreements can be quite intense ... the reality is they are all good people to deal with and I respect them and I think they respect the commission and the commission staff."