Commerce Commission asked to reconsider mobile termination

Communications and Information Technology Minister Steven Joyce has asked the Commerce Commission to reconsider its recommendation on mobile termination access services.


On 22 February 2010, the Minister received the Commission's final report on mobile termination access services. In that report, the Commission recommended the Minister accept the offers put forward by Telecom and Vodafone in lieu of regulation.


"In a letter to me dated 19 April 2010, the Commerce Commission indicated that a new retail offer launched by Vodafone on 13 April 2010 may be material and may have the potential to affect the basis for the Commission's recommendation," says Mr Joyce.


"Under Section 19 of the Telecommunications Act I am required to make the decision that best gives, or is likely to best give, effect to the purpose of the Act - that is to promote competition in the telecommunications market to the long-term benefit of end-users of telecommunications services," said Mr Joyce. "I consider that requiring reconsideration in these circumstances meets this test."


"I would like the Commission to consider any relevant retail offers released since their report was sent or that may be released before they finalise their reconsidered advice, and the implications (if any) that those offers have on the recommendation that I accept undertakings put forward by Telecom and Vodafone."


"While the Telecommunications Act does not require the Commission to report back to me within a specified timeframe, I am keen to see decisions around mobile termination access services made as soon as is practicable and appropriate."


The Commission's processes are set out in Schedule 3 of the Telecommunications Act.