Commerce Commission says low wholesale up-take justifies deregulation

27 Aug 2010

The Commerce Commission of New Zealand has suggested that the wholesale broadband, business data and bundled resale services market should no longer be regulated by the Telecommunications Act of 2001, due to a combination of low up-take and the introduction of competing services. Wholesale services are currently provided by Telecom New Zealand to other telcos, and in the event that commercial terms between the parties cannot be agreed upon, the Commerce Commission would step in to determine the agreement.

Telecommunications Commissioner Dr Ross Patterson commented: ‘The commission’s view is that regulatory intervention in telecommunications markets should be scaled back in areas where we consider there is effective competition, or when alternative services are available to access seekers. Regulation should not impose or maintain burdens which are unnecessary, and it is the commission’s objective to reduce regulation of telecommunications markets as effective competition develops.’