New Zealand’s Commerce Commission is seeking feedback on preliminary proposals for a new regulatory regime for fibre networks, which aims to ensure a competitive market and prevent Chorus and three other contracted local fibre companies – Northpower Fibre, Ultrafast Fibre and Enable Networks – from earning excessive profits at the expense of network and service quality. In addition to the price-quality regulation, the four companies will also be required to publicly disclose information about their profitability, quality of service and capital expenditure.
According to Telecommunications Commissioner Stephen Gale: ‘We want to make sure we design a robust and enduring regulatory framework for fibre networks that have become an important part of New Zealanders’ daily lives. Consumers and businesses increasingly demand ubiquitous, high speed connections to support an ever-expanding range of activities, so it’s important we get it right.’
The government’s ultra-fast broadband initiative was launched in 2009 and currently aims to provide FTTP to 87% of New Zealand’s population by 2022 through the building of new fibre networks in major towns and cities across the country.