Calling for Change

There are 12 million reasons why the High Court penalised Telecom for anti-competitive wholesale pricing between 2001 and 2004 recently. Twelve Million dollars is the biggest fine of its kind in New Zealand history. Some say resulting in providing a perceived level playing field for the Tele-communication sector.

The Government (armed with the Telecommunications Amendment Bill) has prioritised the rolling-out of ultra-fast broadband fibre for most of the country. For the removal of any doubt I am a strong advocate for fast Broadband especially for enhancing and developing an innovative rural economy. I get that.

But why in the age of text, Skype and Facebook does Telecom continue to happily treat Hibiscus Coast residents as cash cows by continuing to milk charges for toll calls from Orewa to Browns Bay or for that matter from Orewa to everywhere else in the Supercity. I don't get that.

It gets worse, there is a regulatory holiday on offer until 2020 for the Telco companies that build the Broadband network. Which means not only are they off limits for any Commerce Commission review of pricing but - more importantly - the Hibiscus Coast division will continue to be financially penalised for toll calls made outside its borders to anywhere in this Super city I don't get it.

Really Telecom has been regulating the sector for many years and as the $12 million fine shows they have been allowed to get away with it (previous to the 2006 Act) while seeing off existing competitive Telco's for a bigger slice of a shrinking pie.

Telecom is the winner here, if only because of its proportion of the current network, even if it has to split its retail and network businesses.

The regulatory holiday does concern me. Firstly because of the enormous return on investment from Telco's that have vested interests, which is seen as an opportunity to ignore the provision of lower pricing. Secondly that the sector will not be be-holden to the commission in terms of price fixing. However in the Hibiscus Coast toll charging context tax payers may be waiting another 10 years to have a conversation about this unfair pricing practice and service.

The incredible rate of technological change and a competitive Telco market must be good for faster Broadband to homes. I get that also. But honestly can we trust Telecom again in what would amount to be a non-regulated market (to 2020) when we (Hibiscus Coaster's) are still treated differently where toll calls are concerned.

Privatisation in part, in a competitive market is great for everyone especially the economy. But meanwhile back on the Hibiscus Coast it's still a toll call charge outside of our borders. I really don't get it! This week when commenting on the termination rates for texts, Tuanz chief executive Paul Brislen said."If they won't give you anything, I would seriously consider moving - vote with your wallet," he told Radio New Zealand.

He went on to say "Telcos are coin operated - if you want them to change their behaviour you have to affect their bottom line." Change providers. I get that!

John Kirikiri is a Member of the Hibiscus and Bays Local Board and past Deputy Mayor/ Councillor of Legacy Council that was the Rodney District.

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