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Telcos welcome Government telco review

Telcos welcome Government telco review

The Government released a discussion document outlining potential changes to the policy framework for regulating telco services

Both Telecom and Chorus have thrown their support behind the New Zealand Government’s ambitions to review the policy framework for regulating telco services.

The Government released a discussion document outlining potential changes to the policy framework for regulating telecommunications services under the Telecommunications Act 2001.

It particularly states copper access prices (UCLL and UBA combined) should be roughly equivalent to fibre prices set by the UFB tendering process.

This is the second of two reviews, and the first phase looks at the current regulatory framework for fixed access services in the transition from copper to fibre networks. It seeks to get clarity on copper pricing by no later than 30 November 2015 and possibly by 30 November 2014.

“Telecommunications service providers like Telecom just need pricing certainty so we have a clear understanding of the costs involved, across various technologies, for providing services to our customers,” Telecom chief executive, Simon Moutter, said in a statement.

Chorus CEO, Mark Ratcliffe, said the second review enables everyone to engage in the establishment of a coherent and stable policy environment.

In a statement Chorus said for UFB to be successful and to maintain its current capital management settings, it was important to get the mix of Layer 1 and Layer 2 pricing right. The options currently presented suggest a potential decrease of $2.50 to $7.50 on Chorus’ broadband pricing.

Both telco’s will be putting forward their submissions by the September 13 deadline.

Legislative changes to put the new framework into effect will be made by the end of the year.


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