Strengthening needed ffor rural broadband open access

Rural Broadband Open Access a good start, but strengthening needed

InternetNZ (Internet New Zealand Inc) this week released a submission to the Ministry of Economic Development that sets out suggestions for improving the open access obligations that will apply if Vodafone and Telecom are confirmed as the Government’s rural broadband partners.

InternetNZ Chief Executive Vikram Kumar says “The unusual situation of two dominant market players getting together means we all need to be very careful that the open access framework is robust”.

“If we don’t have an adequate framework, then competition will be stifled in rural areas. Farmers, small businesses and householders would pay more and get less.

“Our submission makes some broad points about the importance of real open access, and makes some technical recommendations around the proposed price squeeze test that the Government set out in its consultation document.

“We also have to be careful with our terminology. People use terms like ’open access’, ’equivalence’, and ’non-discrimination’ loosely but the actual implications for customers and competition are very different. We should aim for ’Equivalence of Inputs’ in which competitors get supply of the same service at the same price and using the same operational processes as does the supplying entity.

"This is the best way to ensure a level competitive field and leads to the best outcomes for customers in terms of prices, choice, and innovation.

“Our submission therefore suggests that Vodafone should be required to provide services to other potential rural retailers on an ’Equivalence of Inputs’ basis.

“I acknowledge this is a big ask and that Vodafone has ruled it out. They should reconsider: an Equivalence of Inputs framework is the best way to keep regulatory interventions to a minimum, and leaves Vodafone safe from accusations that some parties could raise in future that it is favouring its own retail arm.

“The Government’s proposals are a good starting point and that is to be commended – officials are clearly looking to implement a solid open access framework.

“The best possible framework will allow diverse providers to compete for rural customers. That’s what we want to see, and that’s what our suggestions are aimed at.

“The Government’s timeline is tight, and so we hope they are able to consider and adopt many of our suggestions before negotiations are complete,” Vikram Kumar says.

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