Yesterday Labour expressed major concerns about the Government’s ultrafast broadband project; that two measures underway could derail the goal of affordable and accessible broadband services for New Zealanders.
First, that an operational separation variation request by Telecom NZ could mean to the end of operational separation.
This was a major achievement for New Zealand and has resulted in real competition in the telco sector.
Second, the revelation that the Local Fibre Companies, the private public partnerships set up to manage the $1.5 billion broadband project, will enjoy a 10 year regulatory holiday locking out the Commerce Commission from reviewing prices for fibre available to New Zealand consumers.
Labour has serious concerns that together, the two changes would in essence entrench unscrupulous monopolistic behaviour and keep the Commerce Commission out of the fibre industry for ten years.
Internet NZ has expressed similar concerns. TUANZ, which represents many of the big players in the broadband and telco sector has also expressed some concerns.
I made a mistake by intimating that TUANZ had similar concerns to InternetNZ’s fears that the operational separation variation request by Telecom NZ may amount to the end of operational separation.
I apologise to Ernie Newman, TUANZ CEO, for that. But, I would be very surprised if TUANZ did not share Labour’s and InternetNZ’s concerns. I look forward to talking further with Ernie about it. Will happily supply the muffins.
Aw,
Both of those measures would be very bad, Telecom is in big trouble and any form of monopoly they can scape back would go a long way to solving their problems at the price of consumers but are either of these measures actually confirmed or just rumours..?