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Telecommunications Unbundling Decision

23 December 2003

Telecommunications Unbundling Decision

"The Commerce Commission's decision not to recommend generalised unbundling of telecommunications services is a big improvement on its draft determination", Roger Kerr, executive director of the New Zealand Business Roundtable, said today.

"The Commission's draft determination, influenced by a low-quality cost benefit analysis by its consultants Oxera, was a shocker.

"We are still not convinced that the degree of regulation proposed for broadband is necessary.

"Nevertheless, the Commission has recognised the importance for innovation and dynamic efficiency of respecting property rights and taking a broader view of competition. It is pleasing that it has listened to arguments and come up with a sounder set of conclusions," Mr Kerr said.

ENDS

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