Hon David Cunliffe
Minister for Communications and Information Technology

18 December 2007 Media Statement

Report into co-location services welcomed

The Minister for Communications and Information Technology David Cunliffe has accepted the recommendations of the Commerce Commission’s investigation into the regulation of co-location services.

The Minister’s decision means that regulatory settings for co-location, the sharing of cellphone towers by communication companies, will not include pricing, as it will remain a specified service under the Telecommunications Act.

The Commission has indicated it will initiate a standard terms determination in early 2008 to address the non-price issues, for instance technical or procedural matters that are creating barriers for companies to enter the mobile industry.

“Following the Commission’s report, I am signalling the need for the rapid and robust development of a standard terms determination. This must deal effectively with the issues that the Commission has identified which may be preventing people from entering the market.

“The Commission’s response makes clear that non-price terms can deter entry into the market and prevent competition. This government has put a number of systems in place to assist opening up the market to increased competition between telecommunications companies. I am keen to ensure that this continues to benefit both consumers and business.

“The Commission’s report follows thorough consultation with the telecommunications industry and other interested parties.”

The Commission recommended that the specified service of co-location on cellular transmission sites should not be added to the designated services contained in Part 2 of Schedule 1 of the Act, and that the 2 November Vodafone undertaking should not be accepted.

“The Commerce Commission is also carrying out an independent analysis of mobile roaming services. This is important for encouraging competition and I look forward to receiving this report,” says Mr Cunliffe.

ENDS

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