From 1 January 2022, Chorus, Enable Networks, Northpower and UltraFast Fibre will be subject to new forms of regulation under the Telecommunications Act, and the Commission’s paper details its proposed “high-level approach and process” to determining the information disclosure and price-quality regulations the companies will be subject to.
“The purpose of this paper is to set out our early thinking on how we approach the major aspects the new regulations will cover. This includes the type of information providers should publicly disclose and how we would set the amount of revenue Chorus can recover and the quality standards it must meet,” says Telecommunications Commissioner Tristan Gilbertson.
The Commerce Commission says the price-quality and information disclosure regulations will give effect to and build on the input methodologies for fibre services, such as how the Commission must calculate the cost of capital.
“We recognise that this form of regulation is familiar to New Zealand’s gas pipeline and electricity lines companies but is new for telecommunications services,” Gilbertson says.
“We want to hear as many views as we can, particularly from the wider telecommunications sector and consumer groups, to help shape our approach and processes from the beginning and inform how this regime will evolve over time.”
The New Zealand Government’s Ultra-Fast Broadband initiative originally aimed to provide fibre-to-the-premises to 75% of New Zealand’s population by 2020, and the program was expanded twice in 2017, and now aims to achieve fibre-to-the-premises to 87% of the population - including 1% private fibre - by 2022.