ComCom Nears Mobile Termination Deregulation

The Commerce Commission has confirmed it will investigate deregulating Mobile Termination Access Services (MTAS) – which allow customers on one mobile network to communicate with customers on another via voice calls and text messages (SMS) at regulated rates.

"We've seen a significant shift in the competitive landscape. This means a formal investigation is warranted, but a recommendation to deregulate will be made only if we find regulation is no longer necessary to promote competition for the benefit of Kiwi consumers," says Telecommunications Commissioner, Tristan Gilbertson.

Market shifts include the growth in popularity of alternative over-the-top (OTT) messaging services, such as Facebook Messenger and WhatsApp, which potentially negate the need for SMS regulation, and the move towards data services, which potentially negate the need for voice calling regulation.

Confirmation of the investigation follows the Commission's call for feedback in November last year on its draft decision that there are reasonable grounds to investigate deregulating MTAS.

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