Deadline for telco response extended

Communications Minister David Cunliffe has extended the submissions period on a Commerce Commission recommendation to regulate landline to cellphone rates after concerns were raised about costs.

The commission's report said the price of such calls was too high and it recommended Government regulation.

Cunliffe said last Thursday he would give interested parties one week to submit new concerns arising from the report, but extended the deadline to July 1 after some confusion arose over costs suggested by the commission.

"This is a complex issue and I'm going to consider carefully the advice I get on it," Cunliffe said, adding he was still reading through the report, issued on June 9.

"I thought it was fair to give [the telcos] a little longer.

"I'm still keeping it tight because I don't want to rehash everything that's already been through the commission process."

A Telecom spokesman said the report "undercooked" the average revenue per customer.

Bruce Parkes said the report's computational errors could turn its cost-benefit analysis into a "negative for the country".

The report also suggested that 3G networks be exempt from regulation to avoid dissuading providers from investing in new infrastructure.

Telecom says it plans to make a submission regarding "widespread confusion or disbelief" over the report's decision that its 027 cellphone network is not 3G.

"There's no argument about our technology being 3G, including voice calls as well as data," Parkes said.

"It's not at all clear how they've come to this conclusion."

Vodafone said it planned to continue its argument that regulation would only benefit Telecom in that savings from lower termination rates might not be passed on to customers.

Vodafone finance director David Sullivan said: "We've made the point, but we don't feel it's been given adequate consideration.'

TelstraClear had no comment.