New Zealand's Commerce Commission has issued its final recommendation to the Minister of Communications on the regulation of mobile co-location services on cellular transmission sites.
Co-location allows the mobile equipment of a network operator to be installed on another operator's tower. This can reduce the costs associated with the setting up of cell sites by sharing facilities between network operators.
The Commission recommends that the regulatory settings for co-location should not include price. Non-price elements are already subject to regulation.
The Commission also considered the co-location undertaking submitted by Vodafone as an alternative to regulation. The Commission's recommendation is that Vodafone's undertaking be rejected as it believes that the undertaking is not likely to promote new entry into the New Zealand mobile market.
"The Commission recognises that there are factors preventing effective co-location in the mobile services market – but these are not related to price" said Telecommunication Commissioner Dr. Ross Patterson. "The Commission will use the powers it already has to deal with non price issues. We will launch a standard terms development process to determine the non-price elements of the co-location service."
"Although a Co-location Code has been agreed to by the telecommunications industry, it has yet to result in any co-location" said Dr. Patterson. "By launching a standard terms process, the Commission will be able to develop more effective co-location arrangements, as we have recently done in relation to unbundled local loop services".
Dr. Patterson said that the Commission will monitor co-location prices closely, and will act quickly if problems emerge for access seekers.
Commercial agreement has been reached between Vodafone and New Zealand Communications for roaming. The Commission will defer its final recommendation on roaming until it is clear whether the conditions of the agreement have been satisfied. The Commission expects this to be clear by February.
Posted to the site on 18th December 2007
Posted to: www.cellular-news.com/story/28158.php