Vodafone proposal aims to avert regulation

Suggests voice, text and data pricing model

Vodafone has applied to the Commerce Commission to register an “undertaking” that could see it avert regulation of its roaming and co-location terms.

Vodafone is proposing new market entrants seeking roaming services from Vodafone should pay 21.5 cents per minute for voice calls. This applies to each leg of the call so a call from a roaming user to another roaming user would incur a charge of 43 cents per minute.

Text messages would be charges at 9.5 cents per text per leg and data would be charged at 4.9 cents per megabyte.

In October the Commerce Commission announced there were grounds to investigate amending the terms of the national roaming service and co-location. In November it started a formal investigation into whether to formally regulate the services.

However, Vodafone also sets some non-price terms in its proposed undertaking.

“These include provisions requiring some network building by an entrant, and for roaming services to be excluded in areas where an access seeker builds,” the company says.

The proposal also includes terms for co-location. These are terms are to be used when a new entrant seeks to set up network or telecommunications equipment on a site owned by another carrier, in this case Vodafone.

Vodafone suggests two options; a capital contribution and a monthly rental arrangement.

“The actual pricing for any particular site will depend on the estimated cost to replace a site of its type (we have eight standard types), plus a contribution to any site-specific assets for that site (like access tracks, for example),” Vodafone suggests.

The proposal will be open to submissions before the Commerce Commission writes a draft report and makes its recommendations to the Minister.

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