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Draft Decision On Mobile Transmission Sites

Draft Decision On Mobile Transmission Sites

The Commerce Commission has today released its draft standard terms determination on the non-price terms for co-location on cellular mobile transmission sites (the Mobile Co-location Service).

The Mobile Co-location Service allows the equipment of a mobile network operator to be installed on another operator's cell masts. Co-location helps reduce network infrastructure costs for existing and potential mobile service providers by providing for the sharing of network infrastructure.

"The Commission considers that mobile co-location is in the long-term interests of end-users. It is likely to avoid socially wasteful or inefficient duplication of facilities, while having a positive effect on efficient entry, leading to increased competition in the downstream market for retail market services," said Telecommunications Commissioner Dr Ross Patterson.

The Commission's draft determination includes all non-price terms necessary for an agreement between access providers and access seekers of the service.

The Commission has requested submissions from the industry on a number of issues. There will be a period of further consultation, including a conference, before a final determination is issued.

The closing date for submissions on the draft determination is 22 August 2008. This will be followed by a period for cross-submissions.

Following this period of consultation, the Commission will prepare the final determination. It is anticipated that the final determination will be issued in November 2008.

The Commission's draft determination and related documents can be found on its web site at:
http://www.comcom.govt.nz/IndustryRegulation/Telecommunications/StandardTermsDeterminations/MobileColocationserviceStandardTermsDet/DecisionsList.aspx

Background
Co-location on cellular mobile transmission sites ('the Mobile Co-location Service') is a specified service under Part 3 of Schedule 1 of the Telecommunications Act 2001.

The Mobile Co-location Service allows the transmission and reception equipment of a mobile network operator to be installed on or with another operator's mobile base station (cell mast). This can reduce network infrastructure costs by avoiding unnecessary duplication of masts. As this is a specified service, determining the 'price payable' is outside of the Commission's jurisdiction.

On 22 December 2006, the Telecommunications Act was amended to incorporate a process for the Commission to make a standard terms determination on which a designated access or specified service must be supplied by access providers to all access seekers requesting the service.

A standard terms determination should be comprehensive enough and contain sufficient detail so that there is no need for an access seeker and access provider to enter into a separate agreement for provision of the service within the specified timeframe.

The Act specifies that the following steps must take place before a standard terms determination may be made by the Commission:

 Initiation of the determination process
 At least one scoping workshop
 Commission issues notice to provide a standard terms proposal
 Access provider submits a standard terms proposal
 Submissions from access seekers on the standard terms proposal
 Commission issues draft standard terms determination
 Parties to provide submissions on the draft standard terms determination
 Commission issues standard terms determination

A brief overview of the key steps in a standard terms determination process is available on the Commission's web site www.comcom.govt.nz under Industry Regulation/Telecommunications/Standard Terms Determinations/Overview

ends

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