Group: Third telecoms company needed

Published: 11:20AM Saturday December 13, 2008 Source: Newstalk ZB/ONE News

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A telecommunications lobby group says a third telecommunications company is needed before New Zealand mobile charges will come down.

The Telecommunications Users Association also says the way needs to be streamlined and some of the hitches in the process ironed out for a new company, after new statistics from the Commerce Commission.

Association chief executive Ernie Newman says New Zealanders are paying up to 46% more for mobile calls than the average cost in the OCED countries.

Newman says a lot of it comes down to the establishment of cellphone sites, which the community is often against.

Newman says he believes the Resource Management Act needs to be reviewed so the process of gaining clearance for new towers is streamlined.

He also says delays in competition law reform have made it hard for any new player to enter the market, and that until then, New Zealand cellphone users will be paying more under the existing duopoly.

The Commission found that less than 1% of New Zealand's phone lines have been unbundled since competitors were permitted to install their equipment in Telecom's phone exchanges.

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