Commerce Commission outlines new fibre networks regulatory regime

19 Nov 2019

New Zealand’s Commerce Commission has released its draft decisions on the design of the new regulatory regime for fibre broadband networks. For Chorus, the regulation takes the form of a revenue cap, which will limit the prices consumers pay for broadband, as well as minimum standards for KPIs such as service availability and network performance. Chorus and the other local fibre companies (Northpower Fibre, Ultrafast Fibre, and Enable Networks) will also be required to publish performance measures, such as profits, quality of service, and expenditure. The Commission has made draft decisions on three key areas since its emerging views were published earlier this year. These include a new way of passing through to consumers the Crown subsidy for ultra-fast fibre broadband (UFB), and higher allowances for risk in the allowed rate of return.

The Commission will publish its final decisions on the input methodologies in mid-2020 before setting the revenue cap and minimum quality standards for Chorus and the information disclosure regime for all providers in late 2021. The new regime will apply from the beginning of 2022, by which time most New Zealanders will have access to UFB.