Regulator orders Telecom to open up

22 Jun 2006

New Zealand’s competition regulator says the country’s dominant phone operator Telecom NZ must grant two competitors improved access to its broadband networks. The Commerce Commission has ruled that rival firms ihug and CallPlus should be offered wholesale access to products with the highest available downstream data speeds at a price of NZD28.04 per month. The head of the Commission, Douglas Webb, said: “ihug and CallPlus will be able to expand their retail service offerings by providing higher speed broadband.” Meanwhile, some shareholders are calling for Telecom’s CEO Theresa Gattung to step down as the firm’s share price hit a 13-year low. Telecom’s shares have dropped by 25% since the government ruled last month that it must open up its local telephone networks to competitors.

New Zealand, Spark