Roaming rate call delayed

The Commerce Commission has delayed a decision on whether it will regulate mobile phone roaming charges.

National roaming allows subscribers of one mobile network to use their handset on a different mobile network to make and receive calls. It allows a new entrant to the industry to offer nationwide services while it builds its own network.

"While there are still reasonable grounds to commence a roaming investigation, some new developments have been observed in the market since the commission's original announcement," Telecommunications Commissioner Ross Patterson said.

"These developments include Telecom's willingness to offer roaming on its XT network to any future entrant. There are now two parties, Vodafone and Telecom, who could offer commercial agreements for roaming."

That went some way to addressing the commission's concerns about a future entrant's ability to reach commercial roaming agreements, although that development would not materially affect new mobile company 2degrees, Patterson said.

Interim benchmarks suggested roaming rates were "well above cost".

The commission used mobile termination rates as a proxy for cost-based roaming rates in its original roaming assessment. Patterson said it was more appropriate to come to a final decision on the benchmarks before determining whether to start the roaming investigation.

- NZPA