Commerce Commission’s Fibre Deregulation Review Welcome, But Falls Short Of Addressing Competitive Realities

The Commerce Commission’s decision to further investigate the deregulation of select fibre services offered by local fibre companies (LFCs) is a step in the right direction but falls short of keeping up with the competitive realities of today’s market, says Tuatahi First Fibre Chief Executive John Hanna.

“Although the Commission has recognised the retail broadband market encompasses a range of technologies, from low-earth orbit (LEO) satellite and fixed wireless to fibre and copper networks, the decision to exclude bitstream PON and unbundled PON services does not fully reflect the competitive realities of today’s market.”

“The broadband market has changed significantly in recent years and the competition from these alternative technologies directly shapes consumer choice and pricing. Their impact cannot be ignored.”

Mr Hanna says that Tuatahi provided customer insights and data to the Commission which demonstrated a high level of competition in the market, but this does not appear to have been considered in this decision, with the Commission instead relying on its own data, or publicly available Chorus data.

“While we are pleased to see most of the service categories will be reviewed, it is disappointing that the evidence we provided, which supports a review of bitstream PON services, has not been given sufficient weight,” says Mr Hanna.

“We are more than happy to support the Commission with our research and I strongly urge the Commission to conduct its own research and gather adequate data on switching behaviour to ensure future deregulation reviews are fully informed and robust.”

Tuatahi consistently advocates for a regulatory framework that evolves with the market and supports competition and innovation. Deregulation is essential for enabling ongoing investment in fibre and ensuring all New Zealanders have access to high-quality, future-proof broadband services.

Mr Hanna says deregulation is necessary to enable us to compete on a level playing field, particularly in the face of rapidly advancing technologies like 5G and LEO satellite.

“The Commission’s highly conservative decision risks undermining this goal by only partially addressing the competitive realities faced by the LFCs. Despite this, we remain firmly committed to supporting a regulatory environment that drives competition, encourages innovation, and delivers the best outcomes for consumers,” says Mr Hanna.

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