Using your mobile phone is likely to get cheaper after Communications and Information Technology Minister Steven Joyce agreed to regulate the price charged by telecommunications companies for providing service to customers from other networks.The regulati
Using your mobile phone is likely to get cheaper after Communications and Information Technology Minister Steven Joyce agreed to regulate the price charged by telecommunications companies for providing service to customers from other networks.
The regulation of mobile termination rates was suggested by the Commerce Commission and Mr Joyce said he accepted its recommendation.
Regulation will improve competition and lower prices for mobile phone users, he said.
Mr Joyce was required to make his decision in order to promote competition for the long-term benefit of telecommunications end-users.
"Following today's decision I look forward to New Zealand mobile users enjoying more competition between operators and better prices," he said.
Mobile termination rates would now be added to the legislation and the Commerce Commission would go through a process to set prices.
That was likely to take a few months.
The Commerce Commission expected the regulation to take effect in September - although it will take months beyond that date to set the regulated pricing.
Any issues needing to be considered could be addressed in a timely manner, telecommunications commissioner Ross Paterson said.
The commission would hold a scoping workshop, issue a notice to the access providers, conduct consultation and then determine the price and non-price terms for the supply of services.
“The minister has finally made the right decision to regulate so that the industry and consumers can move forward with more certainty," Labour communications spokeswoman Clare Curran said.
Ms Curran called the decision a "victory for Labour."
The previous government began the drawn-out MTR investigation, though also drew criticism after Trevor Mallard brokered a voluntary settlement with Telecom and Vodafone in lieu of regulation.
