Co-location refers to the sharing of cellphone towers by communications companies. The NZ Minister for Communications and Information Technology David Cunliffe has accepted the recommendations of the Commerce Commission’s regarding the regulation of co-location services. Recommendations included:
- Regulatory settings for co-location will not include pricing – pricing will remain a specified service under the Telecommunications Act.
- Standard terms determination to be developed early 2008 to address the non-price issues - technical or procedural matters that are creating barriers for companies to enter the mobile industry.
- Specified service of co-location on cellular transmission sites should not be added to the designated services contained in Part 2 of Schedule 1 of the Act
- That the 2 November Vodafone undertaking should not be accepted.
Non-price terms deter entry into the market and prevent competition. The government has therefore put systems in place to assist market competition between telecommunications companies.
The Commerce Commission is also carrying out an independent analysis of mobile roaming services.