Threat of regulation drove deal 2degrees

The threat of regulation was enough for 2degrees to nail a commercial national roaming deal with rival Vodafone, according to the new mobile player.

Yesterday the Commerce Commission said it would not regulate the price charged by mobile operators to allow customers of new entrants to use a competitor's network when not in coverage.

Such a service - national roaming - may be necessary for a new entrant to offer nationwide service while it builds its own network.

2degrees director of corporate affairs Mathew Bolland said it was not currently appropriate to regulate roaming rates and a commercial arrangement generally ensured a faster result.

"Regulation is not always necessary but the threat of it plays a very important part in ensuring the players co-operate and we end up with competition," said Bolland.

"This is a good example of how the presence of a strong and engaged regulator can be enough."

He said national roaming deals would allow the company's calling and texting rates to be available nationwide, a direct benefit to consumers.

Telecommunications commissioner Ross Patterson said the commission had deferred an investigation into national roaming while it delved into mobile termination rates - the charges levied by mobile network operators to receive calls and texts from rival networks.

"This also provided Vodafone and 2degrees an opportunity to reach a commercial solution which could remove the need for regulatory intervention," his statement said.

"2degrees have now advised the commission that they have concluded alternative arrangements with Vodafone that enable 2degrees to carry out its business on a more equitable basis."