Mobile phone report faces delay

The Commerce Commission yesterday outlined its plan for a new draft determination to lower mobile phone termination rates, but warned it could be delayed by Vodafone seeking to block details of a secret offer it made to avoid regulation.

The commission aims to release a draft report next month and, after submissions and cross-submissions, hopes to have a final report to the Government by the end of the year.

But, the release said, the timing "may be affected by Vodafone's application to the High Court to prevent the commission from publicly releasing details of Vodafone's offer to the minister to reduce termination rates".

Termination rates are what mobile companies charge fixed-line operators to end calls on their networks. The commission has found that, at around 27c a minute, they are too high by OECD standards, and should be lowered to about 15c.

Communications Minister David Cunliffe last month asked the commission to reconsider several details of its determination, and to weigh commercial offers made by Vodafone and Telecom. Telecom went public with its offer to eventually lower its rate to 18c a minute by 2009.

Vodafone could not be reached for comment, but last week said its offer was meant to be confidential during negotiations.

The company's stance has provoked an angry response from the Telecommunications Users Association.

"Vodafone's action is a flashback to the bad old days when crucial deals between the Government and phone companies were done behind closed doors," said chief executive Ernie Newman. "We strongly condemn the climate of secrecy that Vodafone is now seeking to introduce."