Much ado about MTRs

The final, final undertakings on the contentious mobile termination rates will give the Commerce Commission – and the telco industry divided by them – much to think about over the Christmas break.

The Commerce Commission wrote to Telecom, Vodafone and 2degrees offering the companies a final opportunity to provide undertakings to reduce the fees, before making a recommendation on regulation to the government in February.

The undertakings have been published on the Commission’s website today with the biggest surprise being that 2degrees has withdrawn all its earlier undertakings.

Vodafone and Telecom are sticking to a glide path that would see MTRs for voice calls reduce from 12 cents to 6 cents by 2014 and a hybrid bill and keep model for SMS.

Vodafone has issued a statement today, explaining it has agreed that rates be based on a ‘second plus second’ rounding rather than ‘minute plus second’ basis. Vodafone GM of corporate affairs Tom Chignell says the impact of the rates to its business will be an immediate $50 million reduction in revenues.

“Vodafone has expressed concerns throughout this process that the Commission’s work is lacking in several areas and this continues to be a concern. However the Commission is both prosecution and judge in this area and, in the interests of concluding what has been a lengthy process, Vodafone has offered this Undertaking in line with the Commission’s recommendations,” says Chignell.