Small rural communities may face paying higher prices, reduced service availability or both, if protections from Telecom's local residential telephone services provision obligations are reduced.
Telecom and Chorus (which owns the wires running to the houses) operate under a Local Residential Telephone Service Telecommunications Service Obligations (TSO) agreement, to ensure local residential telephone services continue to be ''affordable and widely available''.
The review is a requirement of the Telecommunications (TSO Broadband and Other Matters) Amendment Act 2011.
According to the summary document, which was released by the Ministry of Business, Innovation and Employment (MBIE) in July, the TSO ensures there is local free calling, continued availability of dial-up internet and dial-up fax services, annual monthly line rental charges increases of not more than the Consumer Price Index, free 111 calls and that services to rural areas cost no more than in urban areas. One of the issues is that the TSO penalises Telecom while its competitors are not affected by the obligations.
The review will look at whether the TSO is still relevant and needed in the light of new technology and if Telecom needs to become more competitive.
Submissions are invited by August 20.
Both Federated Farmers and Rural Women New Zealand have surveyed their members and intend to make submissions on their behalf.
- by Yvonne O'Hara