All sides of industry unite to oppose NZ telecoms legislation

Stuart Corner
Monday, 11 April 2011 15:22

IT Policy - Government Tech Policy

In a rare show of unity, New Zealand telcos, user and consumer organisations have joined forces to oppose planned legislation that will pave the way for structural separation of Telecom NZ, and for the Government funded Ultrafast Broadband Network (UFB), the equivalent of Australia's NBN.

The Telecommunications Users Association (TUANZ), InternetNZ Consumer NZ, InternetNZ and Federated Farmers and 11 telcos have put their names to a letter to MPs expressing their concerns about the Telecommunications (TSO Broadband and Other Matters) Amendment Bill, submissions on which are now being considered by the Finance and Expenditure Select Committee of Parliament.

They claim that, despite the best intentions, the Bill will cause a dramatic reduction in competition and investment in the New Zealand telecommunications market.

They point out that papers obtained under the Official Information Act reveal that the Commerce Commission shares their view and has advised that there are "substantial risks to competition." They claims that: "The only bodies that support the current Bill are those that hope to receive public money to build UFB."

The letter claims that, in its present form the Bill would rob New Zealanders of choice and trap them into unregulated broadband services with no oversight for 10 years; would increase prices by over 20 percent for all urban consumers whose broadband is carried over copper telephone lines and would allow Telecom New Zealand to create a new wholesale monopoly when it separates into two businesses.

The telcos that have put their names to the letter are Vodafone New Zealand, CallPlus, Kordia and its ISP subsidiary, Orcon, TelstraClear, Opto Network, Torotoro Waea (a consortium of 24 Maori organisation and Opto Networks that is bidding for a role in the rural broadband initiative) and 2Degrees.