Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Jury Is Out On Local Loop Unbundling

The Communications Minister Paul Swain says a report on unbundling the local loop shows the jury is still out on the issue.

‘Unbundling local loops lets telecommunications companies rent the individual copper phone wires to the customer premises from the incumbent telephone company," Paul Swain said.

‘It is seen as a means of increasing the level of competition in telecommunications services, particularly telephone access and high speed internet access, and is being introduced in a number of OECD countries.

"Local loop unbundling is one of the many competition issues facing the telecommunications industry, others include number portability and interconnection" he said.

The Ministry of Economic Development commissioned Ovum Pty Ltd to assess the net benefits of introducing local loop unbundling in New Zealand.

"The Ovum report found:
 The economic case for introducing local loop unbundling in New Zealand on its own provided insufficient justification, as potential benefits were approximately equal to the likely cost.

"It did however say that there may be a case for unbundling because:
 The economic analysis did not take into account some possible additional competitive benefits…such as lower prices and quicker introduction of new and improved services that the extra competition would engender.

"It also highlights a number of important pricing and technical issues that need to be considered in implementing local loop unbundling.

"This is a useful report - it will now be forwarded to the Ministerial Inquiry into Telecommunications and I expect it will form a useful input into its deliberations.

"The Ministerial Inquiry is required to examine local loop unbundling as part of its terms of reference.

"Unbundling of the local loop is just one very technical aspect of the telecommunications inquiry which needs careful consideration and not a knee-jerk reaction that could impact negatively on the new economy.

‘The Inquiry process will allow all interested parties to comment on the Ovum report and ensure the case for local loop unbundling is thoroughly examined,’ Paul Swain said.

For electronic copies of the Ministry of Economic Development Report, ‘Report on the Case for Introducing Local Loop Unbundling in New Zealand’, 17 March 2000
AndOvum Pty Ltd, ‘The Economics of Local Loop Unbundling in New Zealand’, A Report to the Ministry of Commerce, 1 March 2000

Please contact Kerry Lamont – Press Secretary – 04 4719889/ 025 270 9106/ kerry.lamont@parliament.govt.nz

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Corrections Corrected: Supreme Court Rules On Release Dates

Corrections has always followed the lawful rulings of the Court in its calculation of sentence release dates. On four previous occasions, the Court of Appeal had upheld Corrections’ practices in calculating pre-sentence detention. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>

ALSO:

Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>

ALSO:

Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news