PARLIAMENT | PARTY | GRASSROOTS

Red Alert

Archive for the ‘broadband’ Category

Joyce’s flip flop: it was his idea

Posted by Clare Curran on May 19th, 2011

Just so you know, it was Steven Joyce who dreamt up the replacement to his dumb regulatory holiday. Not the Maori Party. They forced the issue. Good on them for doing so.

The build up of pressure politically and from the industry was intense and it had finally got to them (the Maori Party). But the alternative was his idea. Yes it provides more transparency. That’s good. But he can’t quantify the Crown’s liability of his new provision. As usual he says trust me I know what I’m doing.

I’m not sure he does.

Its interesting that some media coverage of Steven Joyce’s massive flip flop or backdown in ditching his precious regulatory holiday in favour of a last minute contractural provision which allowed the Commerce Commission to recommend price regulation seems to think the Maor Party came up with the concept.

I don’t think so.

Simon Hendery of Tech Day has described the the Government’s flip-flop over the “forbearance” – or regulatory holiday – provisions of its telecommunications reform bill as the latest farce in what has been a shambolic legislative process. He’s right.

Tags: ,
Filed under: broadband, comms & IT
6 Comments

Joyce the new Muldoon?

Posted by Trevor Mallard on May 19th, 2011

In a stupid move to get Maori Party support for his UFB legislation Steven Joyce has underwritten Telecom.

As technology changes over the next decade and cheaper alternatives become available Joyce has agreed to the taxpayer covering the difference for Telecom.

Talk about heads they win and tails they can’t lose.

This sort of subsidy hasn’t been seen since Think Big.

I will be very interested to see how this new fiscal risk is accounted for in today’s budget. It is an unspecified fiscal risk and because the decision was announced yesterday there is an obligation to include it in the budget documentation.

Looking for the rapidly applied yellow stickys.

Tags:
Filed under: broadband
12 Comments

Play of the Day – Curran nails the Minister for Telecom

Posted by Trevor Mallard on May 18th, 2011

For those without broadband, the Hansard is below: (more…)

Tags: ,
Filed under: broadband
8 Comments

Joyce’s backdown all about certainty: to Telecom?

Posted by Clare Curran on May 18th, 2011

Steven Joyce has made his first really big stuff up.

He’s been forced to ditch the central element of his controversial anti-competitive Telco Bill. A 10 year regulatory holiday for the winner bidder of his $1.5 billion broadband scheme. 

He’s had to replace it with what appears to be an even worse stitched together last minute compromise that has been forced on him by the Maori Party.

The compromise allows the Commerce Commission to regulate pricing on fibre, but if the Commission believes prices should go lower at some point, then Steven Joyce says it’s the Government that should wear the risk, not the consumer. And he’s the one who gets to make the decision on whether to regulate.

Why would he ever agree to regulate if it’s going to cost the Crown? And what is the nature of the compensation being promised to the contractor rolling out broadband? He had no answer for this when I asked him in question time today.

This effectively insulates the contractor from any risk and sets a dangerous precedent in terms of the Commerce Commission’s ability to fairly regulate. And if you don’t believe it go and look at NBR’s story this afternoon about Telecom’s shares going up. Certainty for them. Not the Crown. Which represents you the taxpayers. So Telecom’s shareholders get certainty, but the public still doesn’t. Wonder if the Maori Party gets that.

And I wonder what the Maori Party are getting in return for rescuing National’s troubled broadband bill? Interesting that they exercised their muscle. I don’t think they realise just how anti-competitive and flawed the Bill is and how many more problems there are with it.

I’ll blog more about this later.

I also wonder how Craig Foss, the chair of the Finance and Expenditure Select Committee feels about this deal. Pretty pissed off I reckon.

This policy is too important to be rushed through at the last minute via backroom political deals. It should have been dealt with through the select committee process with considered input from the industry, so everyone could examine it and create an enduring policy that works for the industry and consumers.

Instead Joyce looks stupid. His broadband scheme’s flaws are exposed and there’s more coming.

 Labour will examine closely the detail of this last minute policy change, but we remain opposed to the Bill.

Tags: , , ,
Filed under: broadband, comms & IT
8 Comments

So when’s the broadband decision Mr Joyce?

Posted by Clare Curran on May 17th, 2011

Now that Steven Joyce has his anti-competitive, price rising, monopoly-creating broadband Bill heading back to Parliament, a decision was widely tipped to be imminent on who was going to win the lucrative $1.35 billion contract to deliver the new network.

Labour opposes this Bill. We will repeal parts of it should we win government. And we’ll review the ultrafast broadband and rural broadband programmes.

Joyce had his ducks in a row.  He needed to get the Bill back to the House which he’s done. Next he has to announce who’s won the big contract. The choice is between Telecom and the coalition of lines companies.

That decision was expected before the Budget. But it hasn’t happened yet. And the Budget is on Thursday.

Joyce has pushed through his Bill despite almost unanimous opposition from the industry, consumer groups, Labour, the Greens and now Act parties.

He doesn’t know how to compromise. It’s his way or the highway.

So what’s happened to the plan? How are those numbers looking?

There’s a lot riding on this.

Tags:
Filed under: broadband
7 Comments

Telco Bill info now available

Posted by Clare Curran on May 16th, 2011

For those who are waiting to read the information provided to the Select Ctte on the Steven Joyce’s Telco Bill which gives the winning bidder for the $1.5 billion broadband scheme 10 free years from regulation on pricing and other services.

Labour opposes this.

Now you can find out why

Happy to take calls 04 817 9906

Email me clare.curran@parliament.govt.nz

Tweet me @clarecurranmp

Facebook me www.facebook.com/clarecurranmp

Tags:
Filed under: broadband, comms & IT
7 Comments

Why Labour will repeal key parts of the broadband bill

Posted by Clare Curran on May 11th, 2011

Labour will vote against National’s broadband bill and in Government will repeal sections that we believe will have an anti-competitive effect on the telecommunications industry to the detriment of consumers.

A Labour Government will repeal the regulatory forbearance period and undertake an immediate review of the ultrafast and rural broadband schemes. We didn’t make this decision lightly.

We believe the Bill is deeply flawed and allows anti-competitive behaviour to the detriment of consumers. It blocks the influence of an independent regulator, and would result in higher prices for New Zealanders.

The Minister has revealed that it would cost an extra $400m to $600m to build the UFB network without its controversial “regulatory holiday”. So who will foot the bill? The answer is Kiwi consumers. And there will be a lot more to say on this ssue next week.

Steven Joyce’s new law delivers a sweetheart deal to Telecom which allows them to gouge profit at the expense of New Zealanders.

Providing a regulatory subsidy to the powerful incumbent is likely to chill investment from other parties not awarded the main contract. The focus should be to lift the industry as a whole. Labour supports the need to improve New Zealand’s telecommunications infrastructure to encourage productivity, innovation and export led growth.

A strong pro-competitive regulatory framework remains essential to ensure good market outcomes and high levels of investment across the industry. Should we win government, Labour will ensure broadband is truly competitive and affordable for all New Zealanders.

In question time today Joyce did what he does with everyone on every issue. Dismissed the issues and argued he knows best.

But his chickens are coming home to roost and he knows it.

This Bill has been hotly debated in the select committee for weeks now. We’ve had ongling concerns about the rushed process, the secret nature of the deals being done on broadband and about the content of the  bill. We can’t comment on it specifically until it is released back to the House, which is likely to be Monday.

I would like to put on record my appreciation of the great work done by the Labour members in the select committee, particularly David Cunliffe, the former Minister of Communications and IT who has been a powerhouse of knowledge and has fought the fight against this Bill bringing all his expertise to bear. All of Labour’s economic brains have been engaged on this issue. We are a good team. And there’s now a lot more to be done to develop good policy that will be effective.  And affordable.

It’s a pity that Steven Joyce hasn’t worked out the importance of bringing on board the industry when you want to effect a big change.

Tags: ,
Filed under: broadband, comms & IT
14 Comments

In the interests of transparency

Posted by Clare Curran on May 10th, 2011

Tomorrow the government’s contentious and anti- competitive broadband bill goes through its last stage in the select committee.

It then gets referred back to the House and will be given priority (by the Govt) to go through its second and final readings before becoming law on 30 June (at the latest).

A decision on who gets the bulk of the $1.35 billion contract to lay out the fibre will no doubt follow quickly once the Bill goes back to the House.

Steven Joyce needs to pass the Bill through all its stages quickly in order to ensure that Telecom can structurally separate in time time for the election so all the contracts can be signed and sewn up. The Bill is all about Telecom, even though the contract outcome has not yet been announced.

It’s been a secretive and difficult process. And somewhat surreal.

From the start, it’s been severely hampered by the rushed and secretive drafting process and a complete disregard for potential compromises. The Government has used the commercial tendering process as an excuse to avoid proper consultation.

Labour gave the government every chance for responsible dialogue on this legislation. Lack of transparency and honesty have been hallmarks.

Labour has done its best to provide the government with opportunities to reach a compromise solution. Broadband should be a bi-partisan policy. It’s core infrastructure. Steven Joyce has never wanted it to be so. He’s also shown complete disregard for the industry. And for the public interest.

Worse, it shows a blindness toward the imapct on consumers. The people who will likely not be able to afford his so-called ultrafast broadband. They may even find that as a result of his scheme that the broadband connections they already have go up in price.

Instead, broadband should be more accessible, cheaper and faster. That’s what this policy should be delivering. But it won’t.

Despite our repeated  attempts to make contact and to provide for extended dialogue to reach some compromise solutions, the government has rejected a bi-partisan dialogue and position.

Labour consistently attempted to ask for more time to discuss the issues in order to achieve this outcome.

The government and Joyce have been intent all the way along to pursue their deadline no matter what.

We have released this correspondence and the chronology of contact in order to demonstrate that we have acted in the country’s interests ahead of petty politics. Make of it what you will.

Tomorrow we release our position on this Bill.

Tags: ,
Filed under: #OpenLabourNZ, broadband, comms & IT
19 Comments

Why Joyce is determined to crash through

Posted by Clare Curran on April 27th, 2011

Adam Gifford at the Herald succinctly sums up why Steven Joyce is so intent on ignoring all opposition and calls for compromise on his broadband scheme which looks as if its becoming a white elephant.

Steven Joyce prides himself on being a pragmatic guy. That’s what he told this year’s Telcon conference, anyway – that’s he’s surrounded by people who like talking but he’d like to be remembered as a guy who does stuff.

That must be why he’s giving Telecom and Vodafone $285 million to build a rural broadband network that relies on technology nearing its use-by date, which won’t deliver the promised speeds.

If nothing else, it gives his boss John Key the chance to jump in an airforce helicopter for an election photo-op at some remote location.

Yesterday a group of 11 telcos and groups such as fed farmers proposed a compromise on Joyce’s urban broadband scheme. They argued that instead of Joyce insisting on his regulatory holiday which locks out the Commerce Commission  as independent umpire on price setting for fibre for nearly 10 years, it be replaced with an Australian style special access undertakings system.

They’d done a lot of research. Labour gave it qualified support but needs to look more closely at it. Any compromise solution is worthy of consideration. Joyce of course dismissed it straight away as he dismisses everything. He knows best. Says its all about certainty and there cant be any delays.

Wonder why? Because he has to keep his timetable on course or the contracts can’t get signed with Telecom before the election. And, this is the killer, the whole scheme falls over unless he sticks to the regulatory holiday.

Because that’s the sweetener for the winning bid. 10 years free of independent scrutiny on pricing and a whole lot of other services. Locking up our network to an anti-competitive monopoly. And we’re going to let this happen?

Tags: ,
Filed under: broadband
16 Comments

If it smells like a dog…

Posted by Clare Curran on April 23rd, 2011

Pretty disappointed with Vernon Small’s analysis in today’s DomPost of the Mediaworks debacle, where he lets Steven Joyce off the hook and by implication the rest of his government for any dodgy goings on in giving Mediaworks a $43m loan to defer radio licences.

Small neglects to mention that it wasn’t just Joyce involved. What about Key, Brownlee and Coleman’s involvement? That’s quite a lot of Ministers.

It’s my understanding that Joyce may not have been the first point of call from Mediaworks. There certainly were others involved in pushing for that decision against departmental advice. That doesn’t make him any less culpable for his government’s decisions. But the issue isn’t just about Joyce.

It’s about how a government can be so lacking in transparency about how such a deal was entered into.

And whether it should have been entered into at all.

And what it represented.

Instead Small says this:

You might even wonder if the pressure applied to local subsidiaries by the financial requirements of their overseas owners – in this case MediaWorks’ owners Ironbridge – should be ignored for fear it will be used to “game” extra concessions from the Government.

But describing the arrangement in the strong terms the Opposition has adopted goes too far in an effort to make a sow’s ear out of a silk purse.

Suggestions that Mr Joyce, the communications and information technology minister, had some sort of conflict of interest in helping out the Brent Impey-led company (that Mr Joyce established) survives only till you know that Mr Joyce and Mr Impey are . . . errr . . . not close.

I dunno what other terms one could use to describe it. Dodgy and cronyism seem pretty tame to me. And making Steven Joyce into some kind of maligned being is a bit rich. Look at what’s going on in two of his other portfolios.

There’s currently an Auditor General inquiry  into the link between former National Party Minister Pansy Wong’s husband Sammy and the deals being done by Kiwirail and the Chinese rail company that Wong was associated with. It appears that the Govt has backed off sending the major Auckland electric trains contract to China North Rail (decision in the last few days), but there are other major flatdeck wagon deals likely to go their way.

This week we discover that Joyce’s current chief Ministerial adviser on broadband was named as the chief adviser to Telecom during a major anti-competitive deal in the early 2000s. This has resulted in Telecom receiving a record $12 million fine and the adviser, Bruce Parkes, being named in the court judgement. Did Joyce know about this case when Bruce Parkes was employed? Did he care? It appears not.

But it’s interesting that Joyce’s broadband scheme is being accused of the same anti-competitiveness right now.

Re Mediaworks, the essence of Small’s analysis seems to hinge on the fact that Brett Impey from Mediaworks and Joyce are no longer close. That may well be. I reckon I know why. It’s not really the point. Because Joyce’s relationship with Mediaworks goes back a long way.

And TV3 and the mediaworks radio stations wield considerable influence on our news screens and airwaves. And it is election year.

Another interesting thing. Did Broadcasting Minister Jonathan Coleman attend a Mediaworks board meeting a few months ago? Was the future of TVNZ7 discussed? What else was discussed? Would have loved to have been a fly on the wall.

Oh, and then a week ago former Jim Bolger press sec Richard Griffin was made chair of the Radio NZ board. Keep them quiet and compliant will no doubt be his brief.

TVNZ has already been instructed it is no longer a public broadcaster.

So much for independent, vibrant, critical analysis and public broadcasting.

Tags: , , , , ,
Filed under: #OpenLabourNZ, broadband, broadcasting, comms & IT, media
21 Comments

Halt broadband decisions Joyce and Key

Posted by Clare Curran on April 20th, 2011

The integrity of the government’s broadband schemes in urban and rural NZ are under question. The chief adviser to Steven Joyce has been named in a court decision yesterday as implicated in advising Telecom on anti-competitive practices which have resulted in a $12 million fine.

I understand this the biggest fine ever to come from a Commerce Commission decision.

This official, Bruce Parkes is the man who has designed, and will oversee, the government’s broadband schemes. Both schemes have come heavily under fire for their potential to be anti-competitive and to not result in good outcomes for consumers.

Labour does not mention officials by name generally. However, this case is different.

The urban scheme contains a 10 year regulatory holiday from Commerce Commission oversight on pricing and other key matters which would drive competition on our newest fibre network.

There have been serious questions raised about the rural scheme, which the government conveniently announced today, handing it to… wait for it Telecom and Vodafone. Creating another monopoly for rural New Zealand and very likely resulting in higher prices for rural New Zealand down the track and less ability for competition to cocur.

Steven Joyce bats away all criticisms as irrelevant. This is however too big for him.

Read here was Computerworld has said. Read here what TVNZ has reported.

Labour has today said the government must call a halt to any decisions on broadband rollout following revelations that the man responsible for designing it is at the centre of anti-competitive findings against Telecom which saw the company fined $12 million in the High Court yesterday.

A cloud now hangs over the government’s broadband scheme. There are serious questions about its integrity with regards to compeitition and regulation.

An independent review must urgently be conducted of both the process and system of the rural broadband initiative (RBI) and the Ultrafast Broadband scheme (UFB).

Labour calls on the Prime Minister John Key and the Minister responsible Steven Joyce to stop broadband decisions right now.

The review should be undertaken by an international expert as the New Zealand industry is too involved and interconnected on these issues.

Tags: , , , ,
Filed under: broadband, comms & IT
17 Comments

Steven Joyce can’t deliver

Posted by Clare Curran on April 12th, 2011

He says 75% of NZers can get ultrafast broadband by up to 10 years. They won’t. And NOBODY, thinks they will.

His govt has committed $1.5 billion over 10 years. The deal is (likely) that Telecom gets the big contract plus a whole lot of benefits and the rest of us pay more. It won’t work.

Meanwhile, the Australians have committed somewhere between $36 billion and $43 billion to deliver a high speed fibre network. Their plan is flawed too. But they’ve been pretty open with the Australian public about it and there’s been a lot of public debate. It was an important election issue last year.

Last night in Australia, ABC TV did a big story on this issue. It’s reasonably impressive, if still somewhat controversial.

Have a look

One of the things I like, is that the Australian Minister for Communications talks like a man with vision. Pity ours doesn’t.

Tags:
Filed under: broadband, comms & IT
4 Comments

Broadband should be a bi-partisan policy. Why isn’t it?

Posted by Clare Curran on April 8th, 2011

Phil Goff wrote to John Key yesterday requesting his engagement to achieve a consensus on the Bill and work through the amendments needed to ensure bi-partisan support.

Labour is seeking government agreement to moderate a controversial telco law which it believes will put broadband prices up and won’t encourage new connections to its new fibre network.

This is a reasonable and responsible position and not taken lightly.

Broadband should be a bi-partisan consensus policy area. And it’s a damn shame that it’s become a battleground and a shambles.

This telco law is bad law and bad policy. It is not a durable solution.  It’s unacceptable to us in its present form. We cannot live with it. If the government does not moderate it significantly. If the law is driven through without significant change, then we cannot say we will uphold it, should we be elected.

We cannot announce a hard and fast position until the select committee has finished its work and the Bill is reported back to the House.

We want to minimise any risk to investors, we understand the importance of this network. We want New Zealand’s future to be linked to a high speed digital network that will provide the bedrock for an innovative export-led recovery and for sustainable jobs to be created for our children.

If the government does not moderate it significantly. If the law is driven through without significant change, then we cannot say we will uphold it, should we be elected. We cannot announce a hard and fast position until the select committee has finished its work and the Bill is reported back to the House.

Here’s what I said in my speech at the Tel Con 11 conference yesterday

Tags: , ,
Filed under: broadband, comms & IT
7 Comments

Pay more, less choice: Govt broadband scheme

Posted by Clare Curran on April 7th, 2011

I’m speaking this afternoon at the Tel Con 11 Conference in Auckland, spelling out Labour’s position on the Govt’s new Telco laws and its fatally flawed plan to deliver ultrafast broadband to 75% of New Zealanders.

Criticism is mounting of the Bill and the general plan. It appears that telecom remains its only champion. Even then I’m not so sure about their commitment.

Steven Joyce, the Minister remains obdurate and blinkered. He’s said he’s not interested in what the industry says. He’s doing it for consumers. Not so sure theyr’e going to get a good deal though.

Here’s a couple of differing views. RadioNZ reported:

One of New Zealand’s biggest telecommunications companies is stepping up its criticism of the way the Government is setting up ultra-fast broadband.

The Government will spend up to $1.5 billion rolling out fibre-optic cabling to three-quarters of homes by 2019.

TelstraClear has put a two-page advertisement in the New Zealand Herald, the country’s biggest daily newspaper, picturing a rugby scrum and a referee standing nearby who has been bound with rope and gagged with masking tape.

TelstraClear chief executive Allan Freeth says he supports fibre to the home, but is worried about the way the governments Telecommunications Amendment Bill removes the Commerce Commission’s ability to regulate the new network for 10 years.

Dr Freeth describes it as a regulatory holiday, and says it is unhealthy because it is anti-competitive, and will result in fewer choices and higher prices for consumers using the new fibre network.

and then there was Telecom’s view. Which was all about them, not about the industry.

Telecom chief executive Paul Reynolds says his industry has gone from being the “darlings” to the “dogs” of the technology world as risks turn investors away.

At a telecommunications summit in Auckland yesterday he said new investment was drying up worldwide.

“Our industry finds attracting capital increasingly difficult. You’d be better putting it in the bank, you’d be better putting it in agriculture, because the returns [in telecommunications] are difficult to come by.”

That’s interesting, becasue I understand that during the early part of the negotiations last year a signficiant offer was put on the table to purchase part of Telecom’s assets by a potential bidder.This new investement was part of an innovative bid which could have already started delivering fibre to build our new network.

Reynolds speaks out of both sides of his mouth and Joyce is a dogmatic  CEO (who happens to be in parliament) who hasn’t worked out that building consensus and buy-in is an important part of achieving your goals.

Tags: ,
Filed under: broadband, comms & IT
3 Comments

Broadband no longer a luxury, but a necessity: ITU

Posted by Clare Curran on April 1st, 2011

The International Telecommunication Union (ITU) says that broadband access is no longer a luxury but a necessity that will be crucial to every country’s economic, social and political growth, and it says there is also the need for proactive national broadband planning by every government.

The findings are contained in the latest edition, the eleventh, of the ITU’s flagship ICT regulatory report ‘Trends in Telecommunication Reform’. It says that an effective national broadband policy must “examine the options for stimulating the deployment of broadband and for maximising the positive economic impact of the technology.”

It also says: “The advent of high-speed networks and new kinds of content also puts emphasis on the importance of the role of government and ICT regulators in stimulating the demand for broadband and in promoting investment in infrastructure.

Steven Joyce  would argue his scheme is about promoting investment in broadband infrastructure, but no-one but Telecom and his own department seem to agree. And his idea of regulation is to give himself the powers.

Not sure what he thinks about broadband access  being a necessity. I’ve been arguing that for nearly two years.

Read the findings here

Filed under: broadband, comms & IT
5 Comments

A tale of two Ministers

Posted by Clare Curran on March 24th, 2011

Simon Power and Steven Joyce.

Both have been named as possible future leaders. They have portfolios which cross over. They have very different styles of operating.

In the last two and a bit years, I’ve had experience of dealing with both.

And I’m sorry that Simon Power is leaving Parliament, because he’s a much better political operator. If you want legislation that’s robust and effective.

Just speculating, but I wonder whether he’s leaving at least partly because, as a bloke with some principles and integrity, even if I don’t agree with much of his political platform, he can’t stomach the National Party’s political agenda as we go into the election.

As a relatively new MP I try to watch and learn a bit about how to do the craft of politics effectively.

Winning your seat and winning elections are pretty damn important. But so is good policy and good laws.

I’ve dealt with Simon Power directly on two pieces of legislation; the Copyright Amendment Bill and the rewrite of Patent Law.  I’ve found him to be a man of intelligence and principle, who’s able to compromise and who listens to industry concerns and reads the political, economic environment while attempting to understand how technology changes have fundamentally influenced human behaviour and our economic environment.

How important innovation and genuine competition is for New Zealand’s future; and how important it is not to stifle it.

And then there’s Steven Joyce. I wont say too much, other than to say; he may be clever, but arrogance and tunnel vision aren’t a good combination.

I wonder whether Simon Power, as a shareholding Minister in Crown Fibre Holdings, was consulted about the impact of the Telco Bill on the regulatory powers of the Commerce Commission.

I wonder whether Simon agrees that the Minister of Communications and IT be given such unfettered powers over the new fibre network.

And I wonder whether Simon has concerns at the strength of the industry response against the impact of this new legislation and Joyce’s broadband policy which will mean higher prices and less choice for consumers on broadband for a decade.

Joyce doesn’t care. He’s impervious. His style is pure paternalism. ” It’s true because I say it is and don’t argue with me because I know best.”

Welcome to the Daddy State.

Tags: , ,
Filed under: broadband, comms & IT
24 Comments

It’s a dog

Posted by Clare Curran on March 23rd, 2011

Why should we have to wait until 2019 to get ultrafast broadband on fibre?

While in the meantime, we get to pay more for our copper-based services, which won’t improve during that time?

The Bill that Steven Joyce is rushing through parliament will see a price hike of at least five dollars a month on the average phone and broadband bill for many consumers. The effect of his new law is to re-average prices for the current copper based broadband services which means the price of broadband delivered over copper will increase in urban areas by more than 20 percent.

And, it will stifle competition in the copper market, while the vast majority of Kiwis will not be able to access fibre for up to a decade.

As if Kiwis didn’t have enough to worry about with hikes in food, electricity and petrol prices, they now face artificially increased prices for their broadband and phone while the Government presses through with its ill-advised telco laws and hands enormous powers to the Communications Minister as well as to New Zealand’s biggest telco, Telecom.

And, if I read Juha Saarinen right in the NZ Herald today, when we do get fibre, it may very well be much less than what the government said we’d get. Juha somehow got hold of Crown Fibre Holding’s wholesale pricings for fibre.

He said:

Despite the government’s promise that New Zealanders will receive at least 100Mpbs downloads and 50Mbps uploads on the fibre-optic network that will cost tax payers $1.5 billion, the price book shows that the entry-level service runs at more modest 30Mbps downstream and 10Mbps upstream.

Today’s broadband over the country’s ageing copper phone network provides up to 15Mbps downloads and 800kbps uploads.

So Steven Joyce says we’ll all get ultrafast broadband in our homes. By the end of 2019. He says we’ll get 100Mpbs. But it looks as though we’ll get 30Mbps. He says he doesn’t care what the industry thinks, he only cares about consumers.

And yet those consumers will have to pay more for their existing copper based broadband. Possibly until the end of 2019.

Even David Farrar on Kiwiblog thinks it’s questionable. He doesn’t say it’s a dog. But I reckon he thinks it.

How can we progress as a country if we can’t get broadband right? The only organisation supporting the Government’s new laws are Telecom. I wonder why that is?

They’d be wise to have a bit of a rethink on their position.

At some point Steven Joyce might realise he’s the only one in the room.

Tags:
Filed under: broadband, comms & IT, economy, infrastructure
18 Comments

The Great Broadband Sell-off

Posted by David Cunliffe on March 18th, 2011

Yesterday’s FEC hearings on the Telco Amendment Bill were remarkable.

By the end of the day it was starkly obvious that the Bill hands a gold-plated license-to-kill to Telecom under the guise of ‘structural separation’.  No-one, not even Govt members, could deny that.

Don’t take my word for it: check out the Commerce Commission submission, or (bipartisan) Internet New Zealand’s, or Vector’s, or TelstraClear’s – all here.

The Bill seeks to lock in a “regulatory holiday” by preventing the Commerce Commission from exercising its current oversight for 10 YEARS.  NO other country in the world has done that, and it would be illegal in Europe. It may be in breach of NZ’s WTO obligations here.

Despite that Telecom had the gall to ask for longer! And to weaken the purpose clause of the Telco Act to boot! Have they lost their PR mind? Do they want to channel the ghost of abuses past?

Fair trading “equivalence of inputs” rules between the network owner (Telecom) and wholesale competitors would be watered down so much as to be unenforceable.  Arms-length trading rules currently in Telecom’s Operational Separation Undertakings become “optional”.

And so on.  It’s so patently obvious it is not even worth repeating all the examples.

No wonder Steven Joyce wanted the hearings over in indecent haste.

The result of this great leap backwards to the 1990’s will be much higher prices and less choice for consumers for a decade.  YOU will pay for this sleazy deal.

So WHY has the National Government done this?

Roger Douglas summed it up – it is a “legislative subsidy”: National is ‘selling the law”.

In plain speaking, National in the last election over-promised ultra-fast broadband to 75% of Kiwis for $1.5 billion.  But rather than being a clean subsidy there were massive strings attached, requiring a commercial return through the hopelessly conflicted Crown Fibre Holdings.    The numbers just did not add up.

Hence no rollout for 2½ years, and Steven Joyce is worried about his reputation.

But instead of fronting the problem honestly and getting the whole industry to be part of the solution while building a vibrant competitive market, National has done a side-deal with the incumbent telco that leaves everyone else worse off and the market beggared beyond belief.

That will set back innovation, chill investment and deliver less broadband at higher prices than necessary for a decade to come.

As if Kiwis aren’t facing enough price rises without paying too much for their broadband as well.

Tags: , , ,
Filed under: Cost of Living, Investment, Uncategorized, broadband, business, comms & IT, digital, economic, economy, finance, infrastructure, internet
12 Comments

Telco Hearings Set for Stoush

Posted by David Cunliffe on March 15th, 2011

Clare Curran did a great post on Steven Joyce’s abuse of the parliamentary process with the Telecommuniations Amendment Bill. 

The FEC is meeting Wednesday and potentially Thursday this week to try to ram through all the submissions in one week!  

Paul Brislen, CEO of the Telecommunications Users Assocaiation, was rigthly outraged.

Clare and I put out this release today.  We believe this Bill will take the telecommunications industry back to the bad old days of the 1990s, when market dominance was the norm and the consumer got screwed.

The government’s proposed 10-year regulatory holiday is a complete crock.  The Commerce Commission would be prevented from doing its job of ensuring fair access for competitors, while ensuring investment works in the long term interests of end users. 

Those gains were hard won in the last decade.  The industry does not need a leap backwards.

The design of the proposed structural separation of Telecom is uncertain and implies real risks.

The weak, vague and ill-defined form of “equivalence” in the Bill provides little reassurance to retail competitors and consumers.

Crown Fibre holdings is deeply conflicted as both market player and front line regulator.

Ironically, this could all chill investment in a market NZ desperately needs as it seeks to become a hig-value, knowledge economy.

That doesn’t mean Telecom should not be allowed to structurally separate.  Done properly, that could be a win-win.

But it does mean the legislative processs should be careful and thorough, as billions of dollars of taxpayers funds and private equity are at stake. 

Why is the government so determined to ram the Bill through and pto try to stifle legitimate parliamentary scrutiny?

Could it be that their $1.5 billion with a commercial rate of return is insufficient to stimulate the broadband rollout the government promised in its slogans – and that the only way to square the circle is for the poor, dumb consumer to pay too much for a decade to come?

Could it be that after dithering for two and a half years, Steven Joyce is just plain desperate to make something – anything happen, even at the cost of serious damage to the industry’s future?

Tags: , ,
Filed under: Uncategorized, broadband, business, comms & IT, economic, economy, finance, infrastructure
6 Comments

Joyce takes our democracy backwards

Posted by Clare Curran on March 15th, 2011

I care a lot about democracy. I hope all NZers do. I believe this government is eroding it. Steven Joyce has made a habit of abusing good democratic process. He’s not the only one. But heaven help us if he ever becomes Prime Minister.

This week an important bill that will reshape our telecommunications landscape for many years is being forced though a select committee process with incredible haste, with no reason as to why. The government has forced all public hearings on the Telecommunications Amendment Bill to be held this week, despite increasingly urgent calls from the industry for more time.

Submitters have been given a mere 10 minutes each to put their arguments before the committee, despite the complexity and substance of change contained in the Bill. There’s no reason for this. The government requires the Bill to be reported back to the House by mid May so the legislation can be passed by 30 June. All so it can come into effect and have Telecom have its shareholders approve structural separation. before the election. There’s plenty of time for submissions.
(more…)

Tags:
Filed under: #OpenLabourNZ, broadband, comms & IT, democracy
11 Comments

« Older Entries
Newer Entries »