ComCom Recommends Deregulation Of Rural Copper Network

The Commerce Commission has made its final recommendation to the Minister for Media and Communications that the rural copper network be deregulated.

Telecommunications Commissioner Tristan Gilbertson says that technology has transformed rural connectivity over the past two decades and copper regulation is no longer necessary to promote competition.

“Rural consumers continue to move off copper and onto cheaper and better performing alternatives in large numbers. We consider there’s now enough competition in the market to warrant removing copper access regulation,” Mr Gilbertson says.

Under the Telecommunications Act the Commerce Commission must consider whether copper regulation is still needed to promote competition. The decision to remove copper regulation sits with the Minister for Media and Communications.

"Copper was first regulated 20 years ago when it was a natural monopoly and the only way of providing widespread phone and internet services. Today, less than a third of rural consumers use copper, and that number continues to decline as consumers move to better performing alternatives,” Mr Gilbertson says.

“Most rural consumers can now access three alternative technologies that are often more affordable, better performing, and more reliable than copper,” Mr Gilbertson says.

If agreed by the Minister, deregulation would enable Chorus to start the process of withdrawing copper infrastructure in rural areas.

“We believe it’s important to have a managed withdrawal process to protect rural consumers during any change – similar to the Copper Withdrawal Code that has worked well in urban areas,” Mr Gilbertson says.

“We encourage Chorus to make clear commitments to support consumers through the switch to more reliable, effective, and affordable internet and phone options,” Mr Gilbertson says.

Background

The decision document and more information can be found on the Commerce Commission website

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