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


Telecom’s statement illustrative of monopoly

Telecom’s statement illustrative of monopoly

Econet Wireless New Zealand (Econet) has observed that Telecom’s annual statement illustrates Telecom will continue behaving as a monopolist and that urgent regulation is required to ensure meaningful and effective structural separation that ensures real competition in the broadband market.

“It is entirely predictable and self-serving of Telecom to infer that regulation isn’t necessary to clarify the exact details of structural separation” says Tex Edwards, Chief Project Director, Econet.

“New Zealand is 20 years behind the UK’s telecommunications regulatory regime. Telecom will never mimic BT without a meaningful regulatory framework behind it,” said Edwards.

Econet insists it is absurd the Internet industry will be relying on the Telecommunications Carriers Forum (TCF) when that organisation has been one of the incumbents’ primary tools for obstructing competition since its inception. It has taken more than four years for the TCF not to agree a co-location code that does not even include the critical issue of price.

“It is interesting to note that the structural separation proposed by Telecom has no benefits in the form of co-location of cell sites or backhaul transmission for non – LLU carriers. Without regulatory enforcement of meaningful structural separation, Telecom will continue to do the minimum possible,” said Edwards.

Many of Telecom’s statements have confirmed what Econet has been saying for years in its regulatory submissions. Specifically:

• that the New Zealand consumer has been subsiding the Australian consumer through the failed AAPT venture;

• that Telecom will eventually be forced to build a W-CDMA ( 3GSM ) network; and importantly

• that the price of a new network (which it now estimates at “circa $300 million) is nothing like the minimum $1billion it has talked about in the past.

“The former Telecom Chairman finally acknowledged Telecom’s decision to go with CDMA was a massive blunder when he left the hot seat. Given the much higher cost structures of CDMA, Telecom has steadily capitulated the mobile market to Vodafone’s GSM monopoly. Vodafone now has 64% market share. There has been no competition, because Telecom has not been able to compete.

“Your perspective on the costs of building a new network change when the realisation strikes that you are no longer an incumbent trying to discourage new entrants, but a new entrant yourself.

“The Telecom strategy of confusion and delay has simply been polished and repackaged by the new Chairman, whose experience in maximising the returns of an airport monopoly is now being applied to telecommunications,” concluded Edwards.


© 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>>