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

 


Greens question elimination of competition in telco market

30 October 2012

Greens question elimination of competition in telco market

The Green Party is questioning the Commerce Commission’s decision to allow two of the biggest players in the telecommunications market to merge.

“We’ve seen it in the banking sector, the insurance sector, and now it’s happening in the telco sector. Vodafone’s takeover of TelstraClear will inevitably lead to higher prices for end-users, businesses, and government,” Green Party Co-leader Dr Russel Norman said today.

The Commerce Commission has given clearance for Vodafone’s $840 million takeover of TelstraClear. Vodafone and TelstraClear are the second and third largest players in the New Zealand telecommunications market behind Telecom. The takeover includes a non-compete clause that will keep Australian telecommunications giant, Telstra, out of the New Zealand market place for an undisclosed duration.

“It’s not in the long-term interests of the New Zealand economy for our primary competition regulator to be eliminating competition in the telecommunications industry,” said Dr Norman.

“Large users of telecommunications services will be particularly affected. Where there was once three telcos competing for big contracts, now there will be only two.

“Make no mistake – Vodafone’s move is about eliminating competition. The takeover includes a specific non-compete clause that will keep Australian telecommunications giant, Telstra, out of the New Zealand market indefinitely.”

OECD data shows New Zealand’s telecommunications market is already dominated by two main players compared to places like the UK, Australia, Canada, and the USA.

“As a small market, New Zealand is particularly prone to monopolistic behaviour, eliminating competition and pushing up the prices we have to pay for basic services,” Dr Norman said.

“Telecom and Vodafone already have significant dominance in the telco market. This merger will enhance Vodafone’s ability to compete more broadly with Telecom but it will come at the cost of new entrants like 2 Degrees.

“The Commerce Commission have taken a very short-term view of competition, repeating the same mistake they made in the banking and insurance sectors leaving those markets vulnerable to anti-competitive behaviour from a few big overseas-owned companies.”

“It’s smarter to regulate to ensure we have competitive markets in the first place, rather than having to police two or three dominant players after the fact.”

OECD Communications Outlook report, 2011 (see page 59):
http://www.oecd-ilibrary.org/science-and-technology/oecd-communications-outlook_19991460;jsessionid=64bv1vnb8p3j3.delta

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Transport Report: LGNZ Calls For Proactive Approach To Mobilise Regions

LGNZ has today released Mobilising the Regions, its major transport study, which highlights the economic and social impact of strategic transport decisions nationally and in the regions, and the direct link between regional development, national prosperity, social well-being and cohesiveness. More>>

ALSO:

Transport: New Rules Bring Double-Deckers To Our Cities

New rules that allow buses, including double-deckers, to carry more people will ramp up the public transport offering in our cities, Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say. More>>

ALSO:

Cycling:


Images & Video: Four Alternative Flags For Referendum

Flag Consideration Panel chair, Professor John Burrows, said the Panel’s decision had been guided first and foremost by the results of its engagement programme across a range of communities where thousands of Kiwis shared what was special about New Zealand, as well as the Panel’s own selection criteria. More>>

ALSO:

Labour: New Figures Show Speculators Rampant

New figures released by the Reserve Bank show there’s been an explosion in mortgage lending with most of the growth going to property investors, Labour’s Housing spokesperson Phil Twyford says. More>>

ALSO:

False Official Information Response: English's Apology Accepted

Finance Minister Bill English is being thanked for his apology to New Zealand First Leader and Member of Parliament for Northland Rt Hon Winston Peters... Mr English says his staff and the Treasury have searched again, and they found the document that they denied having. More>>

ALSO:

Midwives On Pay Equity: Historic Bill Of Rights Case For High Court

“We have been left with no choice.” That from Karen Guilliland, the Chief Executive of the New Zealand College of Midwives, as the organisation prepares to file a pay parity discrimination case on the basis of gender under the NZ Bill of Rights Act in the High Court. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news