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 IOC’s Treatment Of Russian Sport, And Lone Wolf Terrorism

A blanket ban on Russian athletes would also have exposed the IOC to criticism that its treatment of Russia would have been marked contrast to its treatment say, of the track and field team from Kenya – a country about which the IOC has very similar doping concerns. More>>

ALSO:

Sounds Like A Plan: Auckland Council Receives Unitary Plan Recommendations

A key milestone in New Zealand planning history was reached today when the Independent Hearings Panel delivered the reports containing its recommendations on the Proposed Auckland Unitary Plan. More>>

ALSO:

National Park Expansion: Forests And Coast Of Kahurangi Protected

Five parcels of high value land totalling more than 890 hectares have been formally gazetted as part of the National Park. More>>

ALSO:

PPP Go-Ahead: SkyPath Gets Unanimous Support

Auckland’s SkyPath project has been given the go-ahead to be delivered through a public private partnership, after a unanimous decision at today’s Finance and Performance Committee. More>>

ALSO:

Gordon Campbell: On The Reserve Bank, The UN Shortlist, And Trump

Can there really be there any link between the US presidential elections and yesterday’s RBNZ signals on interest rates and the NZ dollar? Well, maybe. And it would be this: the improving US economy is reportedly putting a tailwind behind the US dollar, and rendering the actions of our Reserve Bank virtually irrelevant. More>>

ALSO:

Gordon Campbell: On What John Key Should Be Asking Joe Biden

No doubt, US Vice-President Joe Biden will be updating Prime Minister John Key on the chances of a TPP vote taking place in the ‘ lame duck’ session of Congress that’s held between the November’s election and the inauguration of a new President in January. More>>

ALSO:

Make NZ Make Again: Greens Will Establish A Minister For Manufacturing

The Green Party announced today that it will establish a Minister for Manufacturing in Cabinet, to better represent the interests of manufacturers and ensure they thrive. The Minister will be inside Cabinet and have responsibility for the long-term interests of the manufacturing sector. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news