Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Telecom gets regulatory relief on resales

Telecom gets regulatory relief on resales

By Paul McBeth

Dec. 17 (BusinessDesk) – Telecom Corp., which is looking likely to win a chunk of the government’s $1.35 billion fund to roll-out high speed internet, has gained a reprieve from the Commerce Commission on regulation of resales.

The Commerce Commission has recommended to Communications Minister Steven Joyce that sales by Telecom of broadband, data and bundled services to be repackaged and sold by rivals shouldn’t be regulated. Resale services that have significant take-up, such as residential and business lines and smartphone services, should stay regulated, as should services that face limited competition, the commission said.

“With the roll-out of ultra-fast broadband reshaping the telecommunications environment, the commission’s recommendation is predicated on the existing regulated wholesale services, such as the unbundled bitstream service, being accessible as the next step on the investment ladder for telecommunications operators,” Telecommunications Commissioner Ross Patterson said in a statement. “It is critical that the regulated wholesale services remain a viable alternative to the resale services which are recommended to be deregulated.”

Telecom was put on Crown Fibre Holding’s priority list for 25 regions in the UFB initiative, including Auckland. The phone company will carve out its network business to participate in the deal, with a demerger requiring shareholder approval.

The phone company welcomed the decision, saying the legislation has been trumped by more detailed rules, including local loop unbundling.

Tristan Gilbertson, group general counsel at Telecom, said the decision sends a signal to the market at a time when significant investment is needed to roll-out fibre around the country.

“The commission has recognised the importance of rolling-back early interventions in the market, in light of subsequent developments and rapidly increasing competition,” he said.

The regulator flagged this would likely be its decision when it published a draft report on the review in August.

Telecom’s shares rose 0.5% to $2.17 in trading yesterday, and have dropped 14% this year.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

QV: Tax Changes Yet To Dampen Red-Hot Housing Market

Just over a month has passed since the Government announced measures aimed at dampening the rampant growth of the property market, and yet the latest QV House Price Index data shows the market hit a new high in April. The average value increased 8.9% nationally ... More>>

Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>

Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>