New Zealand Watchdog Issues Draft Mobile Ruling

WELLINGTON -(Dow Jones)- New Zealand's Commerce Commission Monday issued a draft ruling on the cost of connecting between Telecom's fixed line network and Vodafone Group's local mobile network.

The competition watchdog's preliminary decision proposes Telecom and Vodafone exchange local calls at a price of zero in line with the "pure bill and keep" method.

Monday's draft ruling applies only to calls from a Telecom land line to Vodafone customers with a local number, not to calls to and from Vodafone's mobile numbers, the commission said in a statement.

Vodafone requested the determination in January after announcing plans to structure its mobile service along geographical lines.

Customers subscribing to the service will be allocated a local number and for a fixed monthly fee will be able to make or receive calls within a geographic area known as the "home zone" at no extra cost.

Calls outside the zone will be charged at standard per minute rates.

The commission's draft ruling is open to submissions from Telecom and Vodafone before a final determination is made.

By Rachel Pannett, Dow Jones Newswires; 64-4-471-5990; rachel.pannett@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 19th June 2006