SUMMARY OF KEY GOVERNMENT DECISIONS
PROMOTING ECONOMIC OBJECTIVES
Regulatory institutions New Telecommunications Commissioner located in the Commerce Commission
funded by industry; specialist staff; full time if necessary
Key functions of Commissioner to:
resolve disputes over regulated services
report to Minister on desirability of regulating additional services
monitor and enforce Kiwi Share obligations
Industry Forum not mandatory but expected to be established
Commissioner can approve codes of practice
Forms of regulation
Designation – obligation to provide the service; sets out pricing principles to be applied in resolving
disputes. Services to be designated initially are:
Interconnection with Telecom’s fixed telephone network
cost-based (TSLRIC) or bill and keep
Wholesaling Telecom’s fixed network services
retail price minus net costs saved
Number portability, including 0800 number portability
Deferred designation (with deadline) - sets a deadline for designation to encourage industry to resolve issues
Fixed-to-mobile carrier pre-selection from Telecom’s network
Specification - an obligation to provide the service, but no pricing principles prescribed
no services to be specified immediately
Process for regulating new services Minister or Telecommunications Commissioner initiates
Commissioner studies and reports to Minister
Minister considers and, if agrees, designates by Order-in-Council (Regulations)
Process for resolving disputes Initial price determination
Full pricing review if requested; 3 Commissioners decide
Appeal on full pricing review only (points of law and judicial review); decision binding meantime
PROMOTING SOCIAL OBJECTIVES
Kiwi Share
Upgraded Kiwi Share requirements
extends geographic coverage to current levels
clarifies that free local calls include dial-up data (e.g. Internet) calls
extends 9.6kbps to 99% and 14.4kbps to 95% of residential lines over two years. (Telecom to bear capital cost of this
upgrade – industry to contribute to any ongoing KSO losses)
Improved funding mechanism – industry continue to contribute, but more transparent and competitively neutral
Telecom to undertake costing of Kiwi Share
final cost determination made by Commissioner
Telecom seeks Commissioner’s approval to oncharge proportion of net operating costs to competitors
Commissioner determines what proportions firms should pay
Improved monitoring and enforcement
Commissioner to monitor performance against agreed standards
Commissioner withholds Telecom’s right to oncharge competitors in the event of non-performance.
Information Society Initiative Partnership between Government, industry and communities, including to promote access
to bandwidth across New Zealand
Details to be decided early next year
Electric fence interference Government to work with key stakeholders to facilitate solutions to electric fence
interference with Internet access in rural areas
Universal service obligations for higher speed data Monitor the uptake of higher speed data services and new
technologies
Consider in 18 months the case for:
a universal service obligation for higher speed data
competitive tendering of Kiwi Share/USO