New Zealands’s ComCom to review $2b mobile market

New Zealand’s Commerce Commission has agreed to launch a review of the nation’s NZ$2.7 billion ($2 billion) mobile market in the coming year.

The competition regulator has been asked by New Zealand telecommunications commissioner Simon Bridges to evaluate why there are relatively few MVNOs in the market.

Bridges has encouraged the regulator to investigate whether competition in New Zealand’s mobile sector is working effectively.

According to the report, the commission is currently considering the scope of the review, which will be determined in consultation with operators.

While New Zealand has three mobile operators – Spark, Vodafone New Zealand and 2degrees – MVNOs form a less important part of the mobile ecosystem than in other markets, Bridges argued.

But mobile operators have questioned the need for a review, stating that competition is already working effectively.

The commission already conducts annual benchmarking of prices and services in the mobile market against international averages.

The most recent report found that prices for bundled voice, SMS and data packages are below the average from other OECD countries, but data-only offerings are comparably expensive.