Court Decision Vindicates Opposition to Govt Broadband Bill

Court Decision Vindicates Opposition to Govt Broadband Bill

The record fine imposed by the High Court on Telecom for anti-competitive behaviour has been welcomed by TelstraClear CEO Dr Allan Freeth. It also highlights the danger of the proposed regulatory holiday until 2020 for the ultrafast broadband network.

“The court decision coming 10 years after the fact highlights the need for a referee on hand that industry and consumers can turn to,” says Dr Freeth.

“This is the type of behaviour one expects of a monopoly with market power, and is the type of behaviour TelstraClear and consumer groups are concerned will occur if the Government does not modify the Bill now before Select Committee.

“The Telecommunications Act was developed to fix these types of problems quickly or to stop them occurring in the first place. Why then is the government hell-bent on again crippling the Commerce Commission and allowing Telecom, or any other fibre company, to rip off every New Zealander all over again? It’s utter madness.

“If the Telecommunications Amendment Bill passes in its current form, fibre companies such as Telecom will get a regulatory holiday until 2020. Until that time only part of the Commerce Act will apply to critical issues like the price for monopoly services. Worse, they’re being given $1.35 billion of taxpayer money.

“Why is this government funding companies with Kiwi’s hard-earned cash and refusing to put in place safeguards to prevent them being charged even more? It’s like paying criminals to break into people’s homes and rob them.

“Unless the Telecommunications Amendment Bill undergoes substantial change, it’s highly likely we’ll see a repeat of this type of behaviour by Telecom, or any other fibre company, abusing their fibre monopoly. Do we really want another 10 years where we all pay far too much to line the pockets of a few?”

ENDS

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