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

 

Telecom faces limited competition in wholesale broadband

Telecom faces limited competition in wholesale broadband, regulator says

By Paul McBeth

Sept. 2 (BusinessDesk) – Telecom Corp. faces limited competition in wholesale broadband markets and its cabinets that are used to provide fast broadband over the ageing copper network will continue to be monitored by the antitrust regulator.

The Commerce Commission has ruled Telecom’s unbundled bitstream access service, which lets rival telecommunications companies differentiate their products from Telecom’s retail offerings, doesn’t have strong competitors and will continue to be regulated nationwide.

“In the wholesale market, there is no effective competition for the more than 50% of end user lines served from cabinets,” Telecommunications Commissioner Ross Patterson said in a statement.

“We concluded that the unavailability of this service has resulted in limited competition in the broadband access market. As a result, the terms of the STD (Standard Terms Determination) will continue to apply across all areas in New Zealand,” he said.

That means Chorus will still be obligated to meet the existing terms, even after Telecom carves itself up in a bid to tap tax-payer funds to build a nationwide broadband network and shed some of its regulatory burden.

The competition review will be the regulator’s last for the next three years, though the commission will continue to monitor competition in the market.

Patterson said the lack of competition in the wholesale market filtered through to the retail end, as “access seekers cannot provide voice services over cabinetised lines using their own exchange-based equipment in conjunction with UBA from Telecom.”

Last month, the regulator said it wanted Telecom to offer slightly lower wholesale prices on its UBA service, which will be locked for three years as a result of legislation to enable the phone company’s structural separation.

Shares in Telecom fell 1.6% to $2.50 in trading yesterday, and have gained 17% this year.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




Civil Contractors: Massive Rebound In Civil Construction Business Confidence

New Zealand’s civil construction industry is riding a massive rebound in post-pandemic business confidence – but this may be undermined by skills shortages, which continue to be the industry’s number one challenge... More>>



Energy: Feeling Our Way Towards Hydrogen - Tina Schirr

Right now hydrogen is getting a lot of attention. Many countries are focusing on producing hydrogen for fuel, or procuring it, or planning for its future use... More>>

Maritime Union: Calls For New Zealand Shipping To Resolve Supply Chain Crisis

The Maritime Union says there needs to be innovative responses to ongoing shipping congestion. Maritime Union of New Zealand National Secretary Craig Harrison says it is essential that New Zealand develops its own shipping capacity... More>>


Housing: New Home Consents Continue To Break Records

A record 44,299 new homes were consented in the year ended June 2021, Stats NZ said today. “The annual number of new homes consented rose again in the June 2021 year, the fourth consecutive month of rises,” construction statistics manager Michael Heslop said... More>>


Real Estate: June Home Transfers Remain High
There were 44,517 home transfers in the June 2021 quarter, the highest June quarter figure since 2016, Stats NZ said today. The number of home transfers was very similar to the March 2021 quarter and was up 18,252 from the June 2020 quarter... More>>



Statistics: Household Saving Falls In The March 2021 Quarter

Saving by New Zealanders in the March 2021 quarter fell to its lowest level in two years after rising sharply in 2020, Stats NZ said today. Increases in household spending outpaced income growth, leading to a decline in household saving from the elevated levels that prevailed throughout 2020... More>>

ALSO: