Commission to launch mobile market probe

10 Oct 2006

New Zealand’s Commerce Commission has announced that it is to conduct a full investigation into the state of competition in the country’s mobile market. A statement from Telecommunications Commissioner Douglas Webb said: ‘Existing competition does not appear to have increased mobile usage, and we haven’t seen significant new entry into the mobile market. The Commission considers the current regulatory settings may not be creating sufficient incentives for that entry to occur.’ The investigation follows a preliminary study which found that New Zealanders are paying high rates for mobile calls. The country’s dominant telco, Telecom New Zealand, is already facing tighter regulations in the fixed line market which will force it to open its networks to competitors. It now appears that Telecom and rival operator Vodafone will be subject to similar scrutiny in the cellular sector. A third company, TesltraClear, is expected to launch its first limited 3G networks next year.

New Zealand, TelstraClear, Vodafone New Zealand