ComCom Signals Potential Deregulation Of MTAS
The Commerce Commission is seeking feedback on its draft decision to consider deregulating the 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.
Telecommunications Commissioner, Tristan Gilbertson, says changing consumer behaviour across the digital landscape means there is a case for considering the removal of regulation.
“The increasing popularity of alternative over-the-top (OTT) messaging services, such as Facebook Messenger and WhatsApp, mean that grounds may exist to consider the removal of SMS regulation.
“It’s also likely that these OTT alternatives, combined with a shift in the market away from voice calling and towards data services, mean that regulation of these services may no longer be necessary,” says Mr Gilbertson.
“Our investigation would focus on changes in the industry and competitive landscape and what is in the best interests of Kiwi consumers.
“If we were to proceed with removing MTAS regulation, this could take the form of complete deregulation, or a more progressive withdrawal of regulation, depending on the balance of competition and consumer interests,” says Mr Gilbertson.
The Commission is interested in hearing stakeholder views on whether there is a case for considering deregulation of MTAS including any views on an appropriate deregulatory pathway for these services.
Feedback on the draft decision is due by 5pm, 11 December 2024 and can be sent to telecommunications@comcom.govt.nz
Background
Mobile
Termination Access Services (MTAS) are wholesale services
supplied by a Mobile Network Operator (MNO) which allows
customers on other networks to communicate (either by way of
a voice call or SMS) with customers of that
MNO.
Before MTAS was regulated, each MNO had
significantly cheaper prices for calls and SMS on its own
network compared to those going to a customer of a different
network. These higher prices hindered competition in
creating a barrier to a new MNO attracting customers to its
network. In June 2010 the Commission recommended to the
Minster of Communications that MTAS be regulated with set
prices to even the playing field.
MTAS became
designated under the Telecommunications Act in 2010. The
Commission is required to consider, at intervals of no more
than five years, whether there are reasonable grounds for
commencing an investigation into whether MTAS, could be
deregulated. The last review was completed in September
2020.
Separately, the Commission can also
initiate, at any time, an investigation into whether MTAS
regulation should be altered, or review the price and
non-price terms that apply to
MTAS.