Commission Fails to Prove Case for Regulation

Commission Fails to Prove Case for Regulation

Regulating the cost of fixed to mobile calls is an unnecessary step that fails to understand changes that are already happening in the sector.

“This is regulation for the sake of regulation,” Telecom General Manager Government & Industry Relations Bruce Parkes said today. “The Commission has failed to make a case for why fixed to mobile calls should be regulated, but is recommending that step nevertheless.

“The Commission has in fact concluded that depending on the assumptions it uses, New Zealand as a whole could be worse off or only marginally better off as a result of the regulation.

“Prices for customers have been coming down sharply – and there was another big step in that direction last month with Telecom’s launch of Freedom calling plans which allow virtually unlimited calling between nominated fixed and mobile numbers for $10 a month.

“This recommendation would see the pointless extension of regulatory powers into new areas.”

Mr Parkes said the move would impact the revenue of mobile phone providers such as Telecom.

Telecom would be making a submission to the Minister of Communications before he makes a decision on the report, Mr Parkes said.

ENDS

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