The Draft Report provisionally recommends that the termination of voice calls on a non-third generation (3G) cellular mobile telephone network should be regulated on a cost basis. It does not recommend regulation of 3G mobile services. It remains open on whether mobile services are subject to limited competition. The Draft Report estimates that the proposed regulation might increase the sum of producer and consumer surplus over the five years to 2010 by $27 million (in present value terms). It asserts that this would be a gain in static efficiency.
Submission: Commerce Commission's Draft Report on its Schedule 3 Investigation into Regulation of Mobile Termination under the Telecommunications Act 2001
1 November, 2004