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Burn Telco Red Tape

12 July 2006

Burn Telco Red Tape

Telecommunications regulator Douglas Webb has announced his retirement next year - and good riddance! "Regulation of the telecommunication industry under Douglas Webb has crippled broadband adoption and other telecommunications services in New Zealand." said broadband consumer and Libertarianz Business Spokesman Luke Howison today.

"New Zealand is 22 out of 30 countries in the OECD for broadband adoption. We have been trounced by Portugal and Australia." Mr Howison lamented. "Government interference in the free market, under the guise of 'promoting competition' has instead encouraged companies such as Australian behemoth TelstraClear to push the government to confiscate Telecom's legitimate property. The loss of $2 billion from Telecom's share price is blatant theft. Rather than realising the criminal stupidity of regulation, Webb is now threatening to regulate Vodafone."

"Instead of bullying companies with rules, regulations and one-sided "agreements", the government should focus on protecting property rights," stated Howison. "Only when telecommunication companies are confident they can invest in infrastructure without government confiscation will New Zealand see competition, quality services, and low prices. Similarly, repealing the Resource Management Act would make it easier to build networks, cellphone towers, and so on."

"Webb has one chance to redeem himself before he retires," Howison concluded. "He could recommend complete deregulation of the telecommunications industry to stimulate real competition. Unfortunately, it seems Webb has an allergy to simple economics."

"It's enough to make you vote Libertarianz!"


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