11. Other Issues
11.1 Next Generation Network Issues
261. Traditional circuit switched telecommunications services networks are now in the process of being replaced by all IP based packet switched networks commonly known as a Next Generation Network (NGN). As discussed earlier, the implementation timetable will consider active incentives for Telecom to migrate customers and services to Next Generation Networks (NGNs), in particular, by setting an appropriate timeframe for EOI legacy services. However, there are some concerns that incumbent service providers may seek to choose technology options that would restrict or impede the ability of other service providers to connect to or interoperate with future NGN based services.
262. BT's undertakings include clear principles on which BT will base its future design, procurement and roll-out decisions for the 21st Century Network to ensure it does not foreclose network access. These include requirements that BT:
- Ensure that the 21CN design supports competition, by allowing other operators unbundled network access;
- Design the 21CN in a way which will support Equivalence of Input;
- Charges reflect a network that is efficiently designed for the above purposes;
- Launch retail products only when equivalent wholesale products are available.
263. These principles are underpinned by a commitment by BT to work in a transparent and multi-lateral process with other operators and service providers to manage the transition to NGNs, and to participate in a new adjudication process for disputes that may arise.
264. NGN (Consult21's) consultation work is centred on a number of working groups that address issues such as:
- Reference interconnect architecture;
- Produce transition and end-user communication plans;
- Oversee the transition.
265. In New Zealand, regulated service issues including pricing are addressed by the requirements or processes set out in the Telecommunications Act 2001 and subsequent amendments.
266. There is likely to be value in establishing an industry consultation process to address NGN interconnection, service interoperability and migration issues in New Zealand. The Ministry is keen to receive feedback on the need for such an initiative and how it might best be implemented.22
11.2 Discussion Questions: NGN Issues
It is considered that there is little ability to include a requirement in the Minister's Determination for establishing an industry consultation process to address NGN interconnection and service interoperability issues in New Zealand. Nevertheless, the Ministry is keen to receive comment on the following questions.
Key Questions
19. Do you have any comments on the need for an industry consultative process to address NGN interconnection, service interoperability and related issues in New Zealand?
20. If so what do you consider should be the scope of NGN issues?
21. Do you have any other comments on any other matters described or arising from this consultation document?
11.3 How the Undertakings Fit with the Existing Regulatory Regime
267. It is intended that the operational separation model should fit coherently with the existing telecommunications regulatory rather than replace it. For example:
- The Commission will continue to set terms and conditions of access to regulated services in accordance with the access regime in Part 2 of the Act (i.e. predominantly via their standard terms determination process). The operational separation model will ensure that Telecom supplies itself on these same terms and conditions in respect of relevant services
- Compelling Telecom to provide access to new wholesale services will still be done in accordance with the processes set out in Schedule 3 and 3A of the Act. Once a new service is regulated, the operational separation model will determine which Telecom unit should provision the service and whether an additional equivalence standard for service delivery (such as EOI) is required.
- The accounting separation framework and information disclosure provisions outlined in Part 2B of the Act will further increase the transparency around the operations and behaviour of the separated units.
268. The Ministry is currently reviewing the Telecommunications Service Obligations (TSO) framework. However, it is apparent at this stage that ultimate responsibility for meeting the service obligations should remain with the Telecom Group, irrespective of the split of particular obligations between Telecom business units.
269. Where compensation is due to Telecom under the Local Service TSO Deed, it is expected that the ANS Unit would receive an appropriate share of compensation, which reflects the extent to which the Unit has maintained or invested in its assets in order to meet Telecom's obligations under the Local Service TSO Deed. The Ministry will consider the relevant impacts between the TSO Review and the operational separation process further as these two pieces of work are progressed further.
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