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Terms of Reference

[ Last Updated 16 February 2006 ]
Status:Archived

23 February 2000

Contents

The Communications Revolution

The world is experiencing a communications revolution. The Internet, e-Commerce and other developments (including the convergence of communication technologies) are profoundly reshaping economic and social life. New Zealand must position itself to meet the challenge of this revolution. The development of information-based industries is a key to New Zealand’s future social and economic development.

The telecommunications industry is of vital importance to the development of the information-based economy. New Zealanders and New Zealand businesses need access to cost efficient, timely and innovative telecommunications services.

Effective competition is widely seen as a key to the development of telecommunications services. The ability of new telecommunications networks to interconnect fairly and efficiently with existing networks is critical to the development of competition.

The Ministerial Inquiry

New Zealand must ensure it has an appropriate regulatory regime for the telecommunications sector to take full advantage of the information economy and future technological developments.

The Government of New Zealand has therefore decided to establish a Ministerial Inquiry into the New Zealand telecommunications services regulatory environment to examine whether the current arrangements are best suited to achieving the Government’s objective in this sector.

Government Objective in Telecommunications

The Government’s objective for telecommunications is to ensure that the regulatory environment delivers cost efficient, timely, and innovative telecommunications services on an ongoing, fair and equitable basis to all existing and potential users.

Terms of Reference

The Inquiry shall:

  1. Assess the extent to which the current regulatory regime meets the Government’s objective for the telecommunications services markets.
  2. If the current regulatory regime does not achieve the Government’s objective, make recommendations for any amendments to the policy and regulatory framework in order to achieve the Government’s objective.
  3. In developing recommendations, assess the costs and benefits of key options by reference to the Government’s objective.
  4. In making its assessment and developing recommendations, take due regard of:
    1. The Government’s overall economic and social objectives, and the current Kiwi Share obligations;
    2. New Zealand’s progress to date in the provision of telecommunications services, including by comparison with progress made in other relevant countries;
    3. regulatory developments in other countries;
    4. relevant theoretical perspectives on best-practice regulation of the telecommunications industry;
    5. the impact of new technologies;
    6. the impact of any options on investment in telecommunications infrastructure and services to meet future needs;
    7. any factors specific to the New Zealand environment; and
    8. any changes to relevant legislation (such as the Commerce Act or the Consumer Guarantees Act).
  5. Make detailed specification of the implementation requirements of any recommendations, such as any industry-specific legislation and regulations.
  6. In making its assessment and developing recommendations the Ministerial Inquiry shall investigate and include particular comment on the following issues.

The Environment for Telecommunications Network Access and Interconnection

  1. Alternative means of establishing interconnection terms and conditions;
  2. Pricing principles and other terms and conditions (such as service quality standards) for current and future forms of interconnection;
  3. Processes applying to interconnection negotiations, including dispute resolution and enforcement mechanisms;
  4. Local loop unbundling;
  5. Resale of telecommunications services;
  6. Information disclosure;

Development of an Information Economy

  1. Whether the regulatory environment facilitates the ongoing delivery of Internet access and other telecommunications services critical to the development of an information economy in New Zealand;
  2. The best means of ensuring efficient network management and investment in network capacity to address the growth of the Internet;

The Kiwi Share Obligations

  1. Whether the Kiwi Share Obligations are the best means of meeting the Government’s objective for residential telephone consumers and facilitating the ongoing delivery of telecommunications services, and if not what alternative arrangements should be put in place;

Numbering

  1. The current numbering plan administration arrangements under the Number Administration Deed;
  2. The current number portability arrangements, including those under the Number Administration Deed;

Other Competition Issues

  1. Bundling of competitive and non-competitive retail telecommunications services in response to competition;
  2. Any undue telecommunications services price discrimination; and
  3. Whether there is any need for new regulatory institutions or arrangements.

Process

The Inquiry team will:

  1. On commencement hold initial discussions with key industry participants and consumer groups on issues covered by Inquiry;
  2. Obtain relevant expertise, including consulting and secretariat services, to assist it in examining issues covered by the Inquiry;
  3. Obtain public submissions on a draft report (prepared by the Inquiry team or a consultant) and hold public hearings;
  4. Obtain expert advice where necessary to ensure due process is followed; and
  5. Report regularly to the Minister of Communications on the Inquiry’s progress.

Reporting Date

The Inquiry will report to the Minister of Communications by 29 September 2000.

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