NZ telcos propose Aussie-style alternative to planned broadband legislation

Stuart Corner
Tuesday, 26 April 2011 10:15

IT Policy - Regulation

New Zealand telcos and user organisations are proposing changes to the enabling legislation for the country's Ultrafast Broadband Network (UFB) that, as it stands, would give providers a ten-year holiday from pricing regulation. Instead they want to see Australian style 'special access undertakings' adopted.

In Australia, submission of an SAU by NBN Co to the ACCC and its subsequent approval is central to the NBN rollout plan. It will set out the price and non-price terms and conditions under which NBN Co will provide access to its monopoly network. In New Zealand the Commerce Commission fulfils the role of the ACCC.

Earlier this month The Telecommunications Users Association (TUANZ), InternetNZ Consumer NZ, InternetNZ and Federated Farmers and 11 telcos 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

Now, according to TUANZ CEO, Paul Brislen, the same group has sent a letter to Craig Foss, the chairperson of the Select Committee, considering the legislation outlining its alternative to the regulatory holiday.

Brislen said: "The letter sets out an alternative to a regulatory holiday and brings the Commerce Commission back into the picture, while also providing certainty to lines fibre companies and access seekers. The model for the alternative plan is the 'Special Access Undertaking' (SAU) approach successfully introduced to the Australian telecommunications regulatory regime in 2002."

"Regulatory certainty could be provided to access providers by ensuring an approved SAU prevailed over any subsequent attempt to regulate prices," Brislen said.

"At the same time, regulatory oversight of prices could be maintained by allowing the Commerce Commission to review and approve price terms in a SAU.

"Hopefully, in this way we can reach a situation where everyone committed to protecting New Zealand consumers and ensuring the country moves forward in the digital age is satisfied, and at the same time New Zealand's competitive environment is preserved."