Review may put mobile case back to beginning

The judicial review sought by Vodafone of a Commerce Commission proposal to regulate landline-to-mobile phone charges could put the process back to square one.

A commission spokesman said yesterday the judicial review could take "weeks, months or longer".

If legal proceedings stretch out past the general election - which must be held by September 24 - all parties may get another chance to make their case.

National Party communications spokesman Maurice Williamson said his party, if elected, would look at the debate "from a fresh perspective".

"What's best for the consumer is not just fixing low prices because, in the long term, that might mean rotten service and appalling investment in the network," he said.

A Telecom spokesman said the company was applying to join the Vodafone proceedings, filed last week.

"But this doesn't indicate at all that we will be making the same arguments or anything like that," he said.

"It really just keeps our hand in the game."

The battle is over the price paid by the public to make a landline call to a mobile phone, so-called "termination rates".

In a final determination last month, Telecoms Commissioner Douglas Webb said mobile network providers were overcharging by 80 per cent.

Mobile phone network providers said calls cost them 27c a minute but, when compared with other OECD countries, the commission estimated calls should cost about 15c.

Webb expects regulation to bring increased competition and lower prices, saving landline customers about $81 million next year.

But Vodafone disagrees, saying Telecom will not necessarily pass regulated cost-cutting on to final users.

The recommendation is being considered by Communications Minister David Cunliffe.