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


Commission Maintains Regulation Of Three Telco Services To Protect Consumers

The Commerce Commission announced today it will keep regulation in place for three wholesale telecommunications services to continue to promote competition and protect consumers.

The three wholesale services are number portability, interconnection with a fixed public switched telephone network (PSTN), and mobile co-location.

“After consulting with the sector, and interested parties, our view is that these services continue to play an important role in the market and should remain regulated for now,” said Telecommunications Commissioner Tristan Gilbertson.

Mr Gilbertson said number portability enables consumers to keep their existing mobile or landline number when switching to a different service provider. “It’s easy to see how people being able to keep their number if they choose to switch between providers drives competition for the benefit of consumers.

“Likewise, we have decided to continue regulating mobile co-location. This is important for driving competition because it allows operators to share mobile network transmission sites and related equipment with competitors, lowering the cost of providing services throughout the country compared to self-providing infrastructure from the ground up.”

Mr Gilbertson said fixed PSTN interconnection is used to enable consumers on different fixed networks to make calls to each other. However, the significance of this service is diminishing as consumers move to newer technologies, such as those delivered over fibre and wireless networks.

“Spark has commenced a process to decommission its PSTN in response to diminishing demand, but PSTN services remain important in many parts of the country, so we have decided we need to continue regulating this service for the time being,” he said.

Schedule 3 of the Telecommunications Act 2001 requires the Commission to consider every five years whether there are reasonable grounds for deregulating a number of wholesale services that are listed under Schedule 1 of the Act. Only these three listed services were assessed in this review with the others scheduled for review throughout the five-year cycle.

Mr Gilbertson said that each of these services is used by retail service providers to supply the most common retail telecommunications services to consumers. “As markets evolve, new retail services are developed and wholesale service providers can face increased competition to an extent that it may no longer be necessary to mandate access, but we are not yet at this point for these particular services,” he said.

The Commerce Commission published for consultation in March a preliminary view that these services should remain regulated. “In submissions on this draft decision, stakeholders largely agreed that the wholesale services under review should remain regulated for now,” Mr Gilbertson said.

The final decision is available on the Commission’s website.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Maritime Union: Deepening Supply Chain Crisis Requires Action

Maritime Union of New Zealand National Secretary Craig Harrison says the global COVID-19 pandemic exposed pre-existing weaknesses in our logistics sector, and created enormous problems... More>>

Air New Zealand: Employees Recognised With $1,000 Share Award

The efforts Air New Zealand employees made during one of the airline’s toughest years will be recognised via an award of $1,000 worth of company shares to all permanent employees... More>>

Consumer NZ: Bank Complaints On The Rise, Survey Shows

Nearly one in five Kiwis had a problem with their bank in the past year, Consumer NZ’s latest satisfaction survey finds. Consumer NZ chief executive Jon Duffy said the number of bank customers reporting problems had jumped to 18%, up from 11% in 2020... More>>

Mercury: Enters Into Binding Agreements To Acquire Trustpower’s Retail Business

Mercury NZ Limited (Mercury) has announced that it has entered into binding agreements with Trustpower Limited (Trustpower, NZX:TPW) to acquire Trustpower’s retail business for NZ$441 million... More>>


ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>

Stats NZ: GDP Climbs 1.6 Percent In March 2021 Quarter Following December Dip

Gross domestic product (GDP) rose by 1.6 percent in the March 2021 quarter, following a 1.0 percent fall in the December 2020 quarter, Stats NZ said today. "After an easing of economic activity in the December quarter, we’ve seen broad-based growth in the first quarter of 2021... More>>