Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Benefits For Customers Yet To Be Seen


Benefits For Customers Yet To Be Seen

The test of today’s determination from the Commerce Commission will be whether customers actually benefit – and that is far from clear, Telecom said today.

“The wholesaling regime under the Telecommunications Act will take a long time to prove itself,” said Telecom’s Chief Operating Officer Simon Moutter.

“The Act encourages competitors to go to the regulator, but customers would be better off if companies sat down and negotiated these things commercially or, better still, competed with genuine infrastructure investment.

“We already wholesale dozens of products and have done for years – testament to the fact that negotiation can be successful.

“While the Commission has taken on board some of our suggestions to create a fair and workable wholesaling regime, there are still parts of this determination that seem very strange.

“The ruling on small businesses, for instance, could see us having to wholesale services to businesses in downtown Auckland where clearly there is already a fiercely competitive market.

“The 16% discount offered to TelstraClear to resell Telecom’s services is big by internationally standards where these agreements are negotiated. It ’s significantly higher than our actual avoided costs and could see Telecom making a loss on some services it has to provide under this determination,” Mr Moutter said.

“While the Commerce Commission has thrown out some of the services that were applied for we’re still dealing with the Act’s very intrusive regime – 98 regulated services compared with only one regulated service in Australia.

“There’s no evidence that over-regulation actually delivers for customers. We don’t want the overall regulatory regime, including the local loop unbundling review which is underway, to stifle investment in the way that has occurred in other New Zealand infrastructure sectors.

“We want customers to have lots of choice from competitors who are prepared to invest, not just resell services on our network,” Mr Moutter said

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news