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


Investment will be the judge of unbundling

Media release
4 May 2006

Investment will be the judge of unbundling

Future investment levels - sufficient to bring good broadband to all parts of New Zealand - will show whether it was right to unbundle, says Business NZ Chief Executive Phil O’Reilly.

“Those arguing for unbundling have said it’s needed to get better broadband to more customers and to improve New Zealand’s growth rankings.

“But those outcomes will occur only if there is significant investment by telecommunications companies.

“Heavy handed regulation like that announced yesterday is more likely to deter than increase investment - common sense tells us that companies fearing they may be regulated are more likely to lobby and less likely to invest.

“This decision also has the potential to inhibit investment in other areas of infrastructure. This example of delays, disputes and disregard for property rights will not be lost on would-be investors in other sectors.

“Business NZ will keep a watching brief on investment in the telecommunications sector over the next few years.

“We have been wary of this kind of government intervention because of our view that it would discourage investment. I hope we will be proved wrong.

“Investment levels sufficient to get better broadband to more people, whether they’re in a major city or a rural area, will be the judge of whether it was right to unbundle.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>