Growing competition in the international telecommunications market has led the Government to reduce red tape on companies offering international telephone services in New Zealand, Communications Minister Maurice Williamson announced today.

"We've decided to repeal regulations requiring companies providing certain international telecommunications services to be registered with the Ministry of Commerce at a cost of $10,000 a year," said Mr Williamson.

"They were introduced in 1989 to reduce the risk of international monopoly companies taking advantage of the open New Zealand market, to the detriment of New Zealand consumers. This was because an overseas monopoly company may only accept incoming calls from the highest bidder among New Zealand companies, which would inflate the price to consumers."

"But now with the liberalisation of Australian, North American and European markets as well as the thriving competition in this country, the regulations are no longer needed."

Mr Williamson said this competition had significantly reduced the cost of New Zealanders making international toll calls in recent years and repealing the regulations would reduce the red tape and added costs on telecommunications companies.

"Although the chances of overseas monopoly suppliers being able to harm New Zealand users is now extremely remote, the Government will retain the regulation making power under the Telecommunications Act, in the unlikely event it is needed in the future," said Mr Williamson.

The regulations will be repealed when the necessary amendment to the Telecommunications Act 1987 has been passed. Until this has been completed, operators must continue to register, but the $10,000 re-registration fee will be removed from July 1 1999.

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Gordon Campbell: On the Sony cyber attack

Given the layers of meta-irony involved, the saga of the Sony cyber attack seemed at the outset more like a snarky European art film than a popcorn entry at the multiplex.

Yet now with (a) President Barack Obama weighing in on the side of artistic freedom and calling for the US to make a ‘proportionate response’quickly followed by (b) North Korea’s entire Internet service going down, and with both these events being followed by (c) Sony deciding to backtrack and release The Interview film that had made it a target for the dastardly North Koreans in the first place, then ay caramba…the whole world will now be watching how this affair pans out. More>>