Embargoed until 12.45 pm
Thursday 10 May 2007

Rt Hon Helen Clark
Prime Minister

Address at

VentureVOIP Launch

Conference Room
Dunedin Art Gallery, The Octagon
Dunedin

12.45 pm

Thursday 10 May 2007

Thanks for the invitation to be here for the launch of the VentureVoip exchange and Conduit3 product range.

My staff had suggested I do a virtual presentation today, but, apparently, by the time the service supplier had installed its 384 port ADSL2+ DSLAM into a live, fibre-fed, cabinet, and my broadband modem had been reconfigured via the Ethernet interface to ensure that the TCPIP stack was working - and that the connection was not suffering from latency, jitter, attenuation, or packet loss - I thought perhaps, it might be quicker to get on a plane and say hello in person.

Broadband infrastructure and access to the internet is a high priority for our Labour-led government’s economic transformation programme. We believe access to high-speed internet is a critical driver of innovation, productivity and participation in the 21st century societies.

As well, New Zealand's geographical distance from international markets means we should maximise our capacity to trade in weightless products like digital content and services. New Zealanders are picking up that challenge, with ICT now an important and fast growing sector in our economy – with a transformative effect on all economic sectors.

Otago’s economy took a great leap forward in the late nineteenth century with the invention of refrigeration and the ability to get meat out to distant markets.

Now ICT can get us to market at the touch of a button. These and other 21st century technologies and innovation are driving our 21st century economy.

It’s important that the regulatory framework around telecommunications supports ICT innovation, rather than obstructing it.

As you know, the government has been spinning wheels since early last year to make major changes in telco legislation and regulation.

The changes we’ve made are spawning a new era of competition in the market. Broadband is already cheaper and faster. And the new settings are helping us catch up with other OECD countries which have enjoyed much more competitive settings for longer.

Local-loop unbundling, Naked DSL, and unconstrained bitstream are covered by the amendment to the Telecommunication Act last December. We want changes in the market as soon as possible.

Changes in the wholesale markets are on a fast track with the Commerce Commission to be introduced later this year, making it possible for firms like VentureVoip to offer increasingly advanced services such as VOIP over the existing telecommunications network.

The telco and ICT industries are undergoing tremendous change. Those changes will lead to new and improved services and lower prices for users, as long as they are not inhibited by unfair competition and lack of investment in the infrastructure.

It is great to see this new New Zealand owned and operated business taking advantage of the reformed telecommunications environment . The way is now open for the introduction of more leading-edge technologies like VOIP, higher quality video conferencing, video on demand, IPTV, and other services as they develop.

VOIP provides a low cost calling option New Zealanders haven’t enjoyed before.

Previously VOIP could only be used like a second line. The effect of regulatory changes like Naked DSL means, in effect, that Kiwis will be able to use it as their primary phone.

This brings benefits in terms of a wider range of services and lower prices for voice calls, both nationally and internationally, generated by more competition in the market.

With the reforming legislation passed last December, we’ve made great strides. There is still a way to go, but the signs are positive. The Commerce Commission is working hard on introducing the regulations required for full implementation as soon as possible. The industry is working constructively on local loop unbundling and Naked DSL, to make them available on the Commission's recently advanced timeline. That should see a standard terms determination made by November.

Telecommunications will soon be characterised by ubiquitous Internet Protocol (IP) based service offerings via a suitable broadband access link, and the continuous transmission of almost everything. That is, except matter – we haven’t quite got to the “beam me up Scotty” stage yet, but someone’s probably working on that in New Zealand as we speak!

To Matt, Mike, and both Ians, congratulations again. I know from the launch countdown timer on your website, that you have been eagerly awaiting today’s launch. Enjoy today, and best wishes for your future operations in our newly competitive telco market.

ENDS

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