Government considers TSO change

20 Aug 2007

The government of New Zealand is considering a proposal to alter legislation covering the Telecommunications Service Obligation (TSO) which will allow companies other than Telecom New Zealand to bid to offer services in unprofitable rural areas. Currently all telcos contribute to the TSO, with the funds offered to Telecom to subsidise its rural networks. Telecom and its main wireline market rival, TelstraClear, contribute around 69% of the total TSO, with Vodafone and five other firms contributing the remainder.

New Zealand, Spark, TelstraClear