Telco regulation process starts with workshop

Steven Joyce, Minister of Communications and Information Technology. Photo / Brett Phibbs

The Government's process to regulate mobile operators' charges to connect calls and send text messages to each other's networks is now under way.

The first stage of the regulation process will be to hold a workshop for the industry and other interested parties.

Yesterday, the Commerce Commission issued a letter outlining matters that would be discussed at the workshop.

Last month, Communications Minister Steven Joyce accepted the commission's recommendations to amend the Telecommunications Act to allow termination rates to be reduced. The commission said the regulation of these rates is expected to lead to greater competition within the industry as mobile and fixed line companies pass savings on to consumers.

Originally the commission accepted Telecom and Vodafone's undertakings for an industry solution but later backtracked when Vodafone launched an aggressive on-network plan for its customers. Although the plan was good for Vodafone's pre-pay customers, it raised concerns about the long-term effect on competition.