Media Release
Issued 28 September 2006/045
Telecommunications Act: Commission issues Final Determination for proposed Vodafone service
The Commerce Commission has issued a Final Determination for Vodafone’s application for an access determination under
the Telecommunications Act 2001. This service will provide interconnection of local calls between Telecom’s fixed
network and Vodafone’s cellular network for those Vodafone customers with a local number.
The Commission’s conclusion is that Telecom and Vodafone should exchange local calls at a reciprocal price of zero in
accordance with the ‘pure bill and keep’ pricing method.
The determination relates to the provision by Telecom of interconnection with Telecom’s fixed PSTN (Public Switched
Telephone Network) for local calls to and from Vodafone’s local numbers. It does not include calls to and from
Vodafone’s mobile numbers.
Interconnection is the service whereby carriers exchange call traffic between each other’s networks, enabling customers
of one network to call customers on the other carrier’s network. In this case it would enable Telecom customers to make,
for example, a local call to a Vodafone customer with a local number.
A copy of the Determination is available on the Commission website.
Background
On 13 January 2006 Vodafone New Zealand Limited (‘Vodafone’) filed an application with the Commission for a
determination requesting access to interconnection with Telecom's fixed PSTN under Schedule 1 of the Act.
On 19 June the Commission issued a draft determination for this application and called for submissions. Both Telecom and
Vodafone made submissions.
Vodafone intends to launch a geographically structured service over its cellular network. Customers subscribing to the
service will be allocated a local number and can make or receive local calls while the customer remains within a
geographic area surrounding the customer’s home or business (the ‘homezone’).
To be able to introduce the service Vodafone needs an interconnection agreement with Telecom for local calls between
Vodafone local numbers and Telecom’s fixed PSTN. Currently Vodafone and Telecom do not have such an agreement.
‘Pure Bill and Keep’ is a pricing scheme for the two-way interconnection of two networks under which the reciprocal
wholesale call termination charge is zero – that is, each network terminates calls from the other network at no charge.
ENDS