New Zealand's competition regulator on June 9, recommended controls on prices for calls to mobile phones, excluding third generation (3G) technology. Telecommunications Commissioner Douglas Webb said limited competition in the mobile market had resulted in mobile phone network operators setting termination rates for fixed line to mobile calls significantly above cost.
"The Commission considers that a regulated reduction in the price of terminating fixed line calls on a cellular network is likely to lead to increased competition and lower prices for fixed-to-mobile calls," he said in a statement.
The Commerce Commission estimated the cost of mobile termination was about 15 NZ cents a minute, 44 percent lower than the 27 NZ cent a minute currently being charged.
"The Commission believes there will be substantial benefits to consumers and business from regulating mobile
termination rates, despite the likely upward pressure on the price of mobile phone services that may result from the regulation," Webb said.
However the Commission excluded 3G or other new technology from the recommendation to the government as it was concerned that regulation could curb investment in the emerging market.
Comments
Comments are closed.