ComCom roaming delay a blow to NZ Communications
The Commerce Commission has delayed its decision on when – or if – it will investigate domestic mobile roaming charges. The news is a blow to mobile newcomer NZ Communications, whose customers will have to roam on Vodafone’s network when outside Auckland, Wellington or Christchurch.
This morning, the Commerce Commission – bogged down in a morass of telco investigations including mobile termination rates, fixed to landline termination rates, sub-loop unbundling, plus separate Telecom and Vodafone High Court actions challenging Telecommunications Service Obligation determinations – announced a three-month delay on any investigation into domestic mobile roaming charges.
As Telecom and Vodafone have full national networks domestic roaming is really only a key issue for NZ Communications, poised to launch as New Zealand’s third main mobile network operator at an as-yet unspecified time over the next couple of months.
NZ Communications is building infrastructure around Auckland, Wellington Christchurch, where the company says it has spent upwards of $200 million its own towers, switches and other infrastructure.
But when NZ Communications customers travel outside those areas, they will have to roam on Vodafone’s network.
However, if NZ Communications is hoping for Commerce Commission regulation to drive down roaming pricing, the three-month delay means any determination will now arrive long after NZ Comms’ launch. If any investigation is launched, it could take up to 12 months, or longer with appeals.
Outgoing Commerce Commission chairwoman Paul Rebstock says she has significant concerns about national roaming: “These concerns primarily involve the prices contained in current commercial roaming agreements and the ability of future potential market entrants [that is, NZ Comms] to negotiate competitive agreements in a timely manner.”
However, the commission has not yet decided whether to launch an investigation into national roaming, and has now deferred its decision on whether to investigate for three more months.
Ms Rebstock the three-month time-out will provide Vodafone and NZ Comms, and others involved in the issue, “with an opportunity to reach commercial solutions to the issues raised by the commission”.
“It goes without saying we have a vested interest,” NZ Comms’ regulatory and legal officer Tex Edwards tells NBR.
However, Mr Edwards has no comment on national roaming while the matter is under review by the commission, but does note that Tuanz, Kordia and Orcon had, like NZ Comms, made submissions to the commission on the matter.
Mr Edwards says national roaming is just one area NZ Comms is focussing on in its effort to win the Commerce Commission’s support in lowering barriers for new entrants. Another key area is mobile termination rates (MTR), the subject of a ComCom proposal late last week. Again, MTR seems to be an area where events aren’t breaking NZ Comms’ way, with the commission putting “bill-and-keep” – the company’s proposal that originating callers’ pay - on the back burner.
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Comments and questions4
Stop whining, NZ Comms, and launch your network. Maybe once you have an offer in the market, some customers and some income THEN you can renegotiate your deal.
it's been nearly a decade. You're late.
You've clearly never faced the strategic & other barriers to entry in telco. Don't you want the benefits of competition?
All we've heard from NZ Comms has been an ongoing list of demands before they could possiblly launch. Co-location. Roaming. Mobile termination rates. Interconnection deals. They need cheaper spectrum. They need a handout from govt (where did the $5m go exactly?). What else do they want? Should Telecom and Vodafone hand over 100k customers each just to get you in the game?
People in cities seldom travel out of them, Get your network going in auckland and then see if anyone cares that they cant use it outside the city. If they do, charge them heaps for the privlige or else dont offer it.
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