An advisory service states that the regulation of controversial mobile termination rates does not mean that that retail prices will see a drop for millions of customers.

The commentary comes following the Commerce Commission's change of opinion on whether termination rates ought to be regulated or not.

In February, the Commission suggested that Communications Minister, Steven Joyce, acknowledge Vodafone and Telecom's combined application, favoring a marketable solution over ruling.

Commissioner Ross Patterson stated that the forceful plan, which presented cut-price rates for calls within the Vodafone network, had destabilized the preliminary theories of the commission.

The heart of the issue remains that what benefit consumers will get and how much drop will finally be seen in the rates.

IDC Telecommunications Research Manager, Rosalie Nelson informed that numerous factors were built in trade pricing, and lowering termination rates would not automatically denote that it would provide cheaper voice calls.

Termination rates are not the mere thing that establishes the charge of voice calls. There are handset funding and marketing. What it does is offer a pathway over the approaching five years for a few assurances.

Vodafone and Telecom projected to plunge rates to 6c per minute for voice costs in their undertakings and plunge text rates to zero. Vodafone has stated that this drop would cost the corporation almost $80 million per year.