12. Conclusions
Since 1987, deregulation and the threat of competition has resulted in significant improvements in Telecom's operating efficiency, service availability and delivery, to the benefit of both business and residential customers. Actual competition from Clear Communications has resulted in substantial improvements, especially in the price of domestic toll services. BellSouth's competing cellular telephone service has been in operation for four years and there has been a progressive improvements in cellular services and tariffs; and Telecom is continuing to improve its services and further reduce its operating costs.
Development of local telephone service competition was delayed by the length of time it took for Clear and Telecom to negotiate a local service interconnect agreement. Recently Clear launched its telephone and centrex services targeting business customers in the main central business districts.
Telecom and Telstra have agreed terms for the provision of number portability.
Saturn has concluded an interconnect agreement with Telecom and plans to commence service in early 1998, targeting residential and small business telephone services, initially in the Wellington area, and other areas in New Zealand as capital availability and market conditions permit.
Since deregulation there has been considerable investment in New Zealand's public telecommunications network by BellSouth, Clear Communications, Global One, WorldxChange, Saturn, Telecom, and Telstra.
Telecom has substantially improved its profitability, range of services, service standard and overall efficiency, over this period.
Prices for a wide range of services, particularly long distance calls, have declined. Customers have also benefited from the introduction of new and improved services.
Residential telephone service quality has generally improved, other than fault performance in recent years. Comparison with overseas results suggests that New Zealand’s residential telephone service fault rates and fault clearance service performance could be improved. Telecom has been addressing this issue.
Further benefits can be expected as competition both intensifies, and widens in terms of the range of service providers.
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