Vodafone filing could put mobile regulation back to ‘square one’

5 Jul 2005

Vodafone’s New Zealand unit is challenging a proposal to regulate fixed-to-mobile charges, causing widespread concern that the move could put the whole process back ‘weeks, months or longer’. Vodafone has requested a judicial review into the Commerce Commission’s proposal to regulate alleged overcharging by mobile network operators. In a final ruling last month, the Telecommunications Commissioner Douglas Webb said that mobile network providers were overcharging by as much as 80%. The Commissioner debunked the operators’ calculations that calls are costing them NZD0.27 per minute and estimated that, when compared with other OECD countries, calls should cost about NZD0.15/minute. Mr Webb is hoping that the introduction of regulation will stimulate competition and lower prices, saving landline customers about NZD81 million next year, but Vodafone disagrees saying that the dominant fixed line telco, Telecom, will not necessarily pass regulated cost cutting on to final users.

New Zealand, Vodafone New Zealand