InternetNZ welcomes Select Committee's report

InternetNZ welcomes Select Committee’s report
Endorses operational separation plan

Media Release
28 November 2006

InternetNZ (The Internet Society of New Zealand) congratulates the Finance and Expenditure Select Committee on its report back today on the Telecommunications Amendment Bill, particularly its recommendation of operational separation of Telecom’s network under an independent oversight group.

Executive Director Keith Davidson says having the network separated out from wholesale and retail is absolutely necessary. “The network is the enduring bottleneck and needs to be separated.”

No structural separation option has been provided for in this Bill. However, given the will to act that has been shown, InternetNZ anticipates the Government would re-regulate for structural separation if Telecom should fail to behave under the operational separation regime.

Davidson says he is delighted the Committee has endorsed and strengthened the Bill, including the strong disincentive of a $10 million penalty for failure to comply with a separation undertaking.

He says the report shows the Committee listened carefully to the submissions made and responded positively to these inputs with sensible amendments to the legislation. InternetNZ looks forward to the implementation of local loop unbundling under the bill and a more open and competitive market for broadband services.

“We believe the Bill as amended will be beneficial by encouraging competition and innovation, resulting in better options for consumers. We are also pleased that there was such broad support for the Bill.”

ENDS

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