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Vodafone's Statement On Commerce Commission's Recommendations

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Fuseworks Media
Fuseworks Media
Vodafone's Statement On Commerce Commission's Recommendations

Vodafone is of course disappointed with the Commission's reconsideration report. Undertakings have been part of the Telco Act since 2006 but the Commission has yet to accept any commercial offers from the industry.

The Undertakings generate lower termination rates sooner than regulation, with price cuts from October this year rather than at the end of yet another long period of debate. 2degrees is not having any trouble competing, so the Commission's efforts to protect it, whilst theoretically elegant are completely unnecessary from a practical point of view.

The difference between the regulated rate and the Undertakings is likely to be minimal at best - perhaps two or three cents per minute better for voice and almost no difference for TXT. Is it worth delaying the introduction of these rates for another year while the Commission decides on its theoretical model?

Vodafone will continue to make the case for the Undertakings as they offer better value, sooner. The Minister will have to consider whether now is the right time to further expand regulation without a solid basis for intervention.

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