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Mobile Market: Competition Issues

Issued 23 August 2006/024

Mobile Market: Competition Issues

On 10 May 2006, the Commerce Commission announced that it intended to examine the reasons for the lack of new entry into the mobile services market as a prelude to deciding whether or not to commence an investigation into possible changes to the regulatory framework. The Commission had expected to complete the initial phase within a few months and make an announcement by the end of August.

Since the Commission launched its review, there have been several developments in the marketplace. TelstraClear has announced that it will launch new mobile services in Tauranga next year, while Vodafone has signed heads of agreement with three potential resellers of its services.

The Commission is still evaluating these new developments and the information from industry on issues surrounding entry, and expects to announce the outcome of the initial phase within the next few weeks.

ENDS

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