Hon David Cunliffe
Minister of Communications
Minister for Information Technology
Associate Minister for Economic Development

20 August 2007 Media Statement

TSO review document 'next step' in overhaul

Minister of Communications David Cunliffe today announced the release of a discussion document for a review of the Telecommunications Service Obligation (TSO) regulatory framework.

The focus of the review is the Local Service TSO which embodies the original Kiwi Share Obligations for ordinary local telephone service, made as part of the TSO framework when the Telecommunications Act 2001 came into force.

"An up-to-date effective TSO regulatory framework is a key element of the government's telecommunications strategy and an important underpinning of rural and regional services. It is the next step in the Labour-led government's overhaul of the telecommunications sector.

"This is a 'first principles review'," said Mr Cunliffe. "However, fundamental aspects of residential local telephone service, such as access to emergency calling and a free local calling option, will continue.''

"It is 17 years since the original Kiwi Share Obligations for local telephone service were established. This review will ensure they keep pace with the rapidly evolving telecommunications needs of New Zealanders,'' Mr Cunliffe said.

"This document notes issues around current levels of service and infrastructure, particularly in rural and regional New Zealand, and canvasses what aspects of TSO local telephone service need updating.

"It will assess the merits of introducing a broadband TSO to address shortfalls in the availability of broadband services in rural areas,'' Mr Cunliffe said.

"It will look at the case for changing the way that the Local Service TSO Provider is compensated, including whether to introduce contestability for determining who can access a TSO subsidy funding for supplying service. It will consider how price changes should be applied and who should be eligible for TSO local service; and what emergency call service requirements should apply.

"I invite both telecommunications service providers and telecommunications users to provide their views on the case for change on the issues raised in the discussion document.'' The discussion document is available on the online version of this release at www.beehive.govt.nz/cunliffe. Submissions are due to the Ministry of Economic Development by 28 September 2007. Further details at www.med.govt.nz

ENDS

© Scoop Media