Telcos and consumer group proposes broadband law alternative

Tuesday 26th April 2011

A group of telcos and consumer organisations opposed to a regulatory holiday proposed as part of the Government's $1.5 billion ultrafast broadband (UFB) project are suggesting an alternative.

The group, fronted by the Telecommunications Users Association of New Zealand, today said the model for its alternative plan was a special access undertaking (SAU) approach introduced to the Australian telecommunications regulatory regime in 2002.

A SAU could provide certainty to those investing in UFB, including Telecom and the Regional Fibre Group, while also providing certainty to those expecting to buy UFB.

Regulatory certainty could be provided to access providers by ensuring an approved SAU prevailed over any subsequent attempt to regulate prices, the group said.

At the same time, regulatory oversight of prices could be maintained by allowed the Commerce Commission to review and approve price terms in an SAU.

The group said its main worry was a proposal that successful fibre company bidders in the UFB project would receive a 10 year holiday from regulation, and the removal from the commission of any oversight of prices and services until 2020.

NZPA

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