Communications Minister Simon Bridges yesterday released the final details of the Government’s reform package to improve the Telecommunications Act and modernise the communications sector.
The aim was to deregulate the copper network by 2020, introduce a more predictable utility-style model for ultra-fast broadband and improve oversight from the Commerce Commission to protect consumers, he said.
"UFB is already available to more than one million homes and businesses in New Zealand, and over 85% of New Zealanders will be able to access the high-speed network by 2024.
"As the copper network is essentially being replaced by UFB, it is appropriate that copper regulation be removed from 2020 — it makes sense to focus on the services that most people will be using," Mr Bridges said.
Chorus chief executive Kate McKenzie said Chorus welcomed the announcement the telecommunications sector was to provide better information about its performance to consumers.
Many consumers were confused about the options available to them and how performances stacked up.
Simple and understandable standards and disclosure would help all consumers feel better informed about their choices when buying a service.
"For our part, we have already taken many steps to improve the information we provide about our performance, including openly addressing where we need to do better in our role as a provider of wholesale infrastructure."
InternetNZ chief executive Jordan Carter said there were some wins for the public in Mr Bridges’ announcement.
The new proactive powers for the Commerce Commission to ask tough questions about the quality of service people could expect were good to see.
There were too many complaints by consumers in the telco sector and that had to change, Mr Carter said.
On the downside, tweaks and adjustments to the post-2020 framework would mean more money going into the hands of Chorus from users of copper broadband services outside the fibre broadband areas.
That meant slightly higher broadband prices, Mr Carter said.
He was also not impressed with the current entry-level broadband product being used as an anchor product in 2020. That product was too slow last time and it was still too slow now.
Mr Bridges said telecommunications services had become more important to everyday life and business in New Zealand and the current regulatory settings needed to be refreshed to reflect that.
The final package reduced compliance costs for industry and further encouraged innovation and investment.
