Fixed line to mobile phone pricing watched

Last updated 08:33 01/11/2012

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The power of the Commerce Commission to monitor telco companies is being extended to include fixed-to-mobile pricing.

The move follows Tuesday's approval for Vodafone to buy TelstraClear, which sees Vodafone move from providing mainly mobile services to also having the fixed line services (from TelstraClear).

"The merger of Vodafone and TelstraClear will bring about major changes in the telecommunications sector. Now that the merger has been confirmed, we plan to observe its impact on fixed and mobile pricing - separately and in bundles - and monitor any changes in the market," Telecommunications Commissioner Stephen Gale said.

"We aren't anticipating any anti-competitive pricing arrangements coming from the newly merged entity. However, we are required to monitor developments in the telecommunications sector.''

Gale said mobile termination rates were already regulated to minimise the barriers to competition in the mobile market and mobile pricing was monitored in case any barriers were raised by new pricing plans.

''We have similar concerns in fixed-to-mobile pricing so will watch and see what fixed-to-mobile pricing plans appear in the market," he said.

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