Initial green light for portability

By Richard Braddell

WELLINGTON - The Commerce Commission has tentatively approved the independent telephone number administration and portability deed hammered out under Government pressure by Telecom and some of the new entrant telephone companies late last year.

In reaching its draft determination, the commission found that the deed would result in more competition than if the status quo was maintained and those gains could be achieved far more quickly than through regulation which could take up to two years.

The commission is to hold a conference with the telephone companies in Wellington on April 20-22 before releasing its final decision on May 10.

The deed, which breaks several years of stalemate, was signed under the threat of Government regulation late last year by Telecom and four new entrant telephone companies, Vodafone, Telstra, Teamtalk and Newcall.

But in spite of universal acceptance of its independent number administration provisions, five other players, Clear, Saturn, WordxChange, Compass and Global One, refused to sign because they regarded a second part of the deed which bundles in procedures for a technical solution for long-term number portability as excessively open-ended.

Number portability is generally regarded as one of the keys to a competitive telecommunications sector because many customers are reluctant to switch to another carrier if they cannot keep the same number.

At present, Telecom ports numbers using call forwarding, a retail service which cannot carry enhanced services and is demanding on exchange facilities if used in any quantity.

An alternative solution using intelligent network technology is regarded as the holy grail.

But while the deed's tie between independent administration and number portability was objectionable to several carriers, Vodafone was one that regarded it as essential in order to commit the industry to a study into the long-term solution, the commission said.

According to the director of the NZ Institute of Economic Research, Alex Sundakov, the provision linking access to numbers with participation in the deed means that it is not practical for any company to stay out of the deed for any length of time.

However, telcos that have not signed may be able to get numbers through signatories. The commission is seeking comments on their ability to do so.

The deed also contains a provision gagging signatories from commenting publicly in relation to itself or its management without prior approval of the management committee.

Despite protestations from the Telecommunications Users Association and Clear that confidentiality provisions would remove matters of public interest from the public arena and stifle public debate, the commission considered the confidentiality clause as unlikely to lessen competition in any way.