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

Gordon Campbell: On The Mt Albert Aftermath

Personality politics – Jacinda is great! Jacinda is not so great! – have dominated the coverage of the Labour Party’s fortunes this week...

Still, this is a relatively new and welcome problem for the centre-left. Labour has seemed so bereft of crossover talent for so long that it seems almost embarrassed by this latest development. More>>

 

Conservation: Central Govt Takes Over 1080 Regulation

“This new approach standardises the rules for using such poisons rather than the current system of different rules in different regions. This change will reduce costs and delays for operators, ensure consistent conditions throughout the country, reduce mistakes from misunderstanding rule differences and allow best practice approaches to be used." More>>

ALSO:

Election Entertainments: ACT Has Prison Plan, Greens Have Water Bill

Green Party launches Member’s Bill to protect our freshwater The Green Party has today launched a member’s bill that will keep water from underground sources, called aquifers, safe from pollution and contamination. More>>

ALSO:

2040 Target And Lower Standards: “Swimmable” Rivers Five Times More Likely To Make You Sick

Forest & Bird has condemned the government’s new water quality standards, warning New Zealanders that they lock in current levels of water pollution and allow for a 5-fold increase in the chance of getting sick from swimming in a river. More>>

ALSO:

Immigration: Clampdown On Rogue Employers Good First Step

The Human Trafficking Research Coalition is pleased at the new clampdown on rouge employers who exploit migrants announced by Minister Woodhouse this morning, and believes this is a step in the right direction. More>>

ALSO:

Mayor: 750 New Social And Affordable Homes For Wellington (Over A Decade)

The next stage of Wellington’s Housing Upgrade Programme will see at least 750 new units of social and affordable housing built over the next decade, Mayor Justin Lester has announced. More>>

ALSO:

22/2: Christchurch Quake Memorial Unveiled

A city, a region, a nation and an international community impacted by the Canterbury Earthquakes will come together to mark the sixth anniversary of the deadly quake and dedicate Oi Manawa Canterbury Earthquake National Memorial. More>>

ALSO:


November Quakes:

Gordon Campbell: On The Mana-Maori Party Deal

If the self-interest involved wasn’t so blatant, the electorate deal between the Maori Party and Hone Harawira would be kind of poignant. It’s a bit like seeing the remaining members of Guns’n’Roses or the Eagles back on the road touring the nostalgia circuit… playing all the old hits of Maori unity and kaupapa Maori politics. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news