Inquiry Opts for More Light-Handed Approach - 9 August 2000
[ Last Updated 21 February 2006 ]
4 October 2000
The Government released the Final Report of the Ministerial Inquiry into Telecommunications today.
The Report sets out the Inquiry's recommendations to the Government for changes to the regulatory regime governing electronic communications, which are needed for New Zealand to move quickly to an information economy and reap the full benefits that such an economy has to offer.
The members of the Inquiry panel were Mr Hugh Fletcher (Chair), Ms Cathie Harrison and Mr Allan Asher.
In its Report, the Inquiry has opted for a more light-handed approach than was signalled in its Draft Report released in June.
A study commissioned by the Inquiry estimates that the recommended regime will produce a net benefit to the economy of around $45 million each year, as well as gains to consumers of around $330 million each year.
Key components of the regulatory regime recommended by the Inquiry are:
- an emphasis on commercial negotiation and industry self-management;
- the establishment of an industry forum as a focus for the industry's development of codes of practice (the Electronic Communications Industry Forum);
- a list of "regulated" services, which have rules governing their supply;
- the freedom for parties to reach agreement on terms for regulated services, including pricing, that differ from these rules;
- an open and transparent process for determining whether services should be regulated – or should cease to be regulated;
- the establishment of a stand-alone regulator – the Electronic Communications Commissioner – to rule on industry disputes when necessary;
- a swift and transparent dispute resolution procedure;
- a better-defined "Kiwi Share" service obligation, the responsibility of Telecom, which will be embodied in legislation and maintain an unlimited free local call option for residential voice and low-speed data calls;
- a four yearly review of Telecom's Kiwi Share obligations; and
- an Information Society Initiative to ensure broadband services become as widely available as possible, and to facilitate full participation by New Zealanders in the information economy.
The Inquiry's Final Report follows an Issues Paper, Draft Report and public hearings and submissions. With the benefit of those interim steps, the Inquiry has further focussed its recommendations in the Final Report by introducing a lower-level of regulation and providing for more "checks and balances" in the proposed regime.
Changes to the Inquiry's proposals in its Draft Report include:
- a recommendation that the entire regulatory regime be reviewed within six years;
- removal of the ability of the Electronic Communications Commissioner to intervene where parties have reached commercial agreement;
- introduction of a more flexible, two level regime for regulating services to enable a more light handed application of regulation:
- a lower level - "specified services" – which simply requires the supply of a service, when requested, in a timely and non-discriminatory way. The large majority of services recommended for regulation are at this level.
- a higher level – "designated services" – which, in addition to timely and non-discriminatory supply, includes pricing rules if agreement cannot be reached by the parties. Only Telecom's fixed wire network is recommended for regulation at this level.
- Sky Television's conditional access systems (set-top boxes) to become specified services, but only for the purpose of allowing other industry players to help develop a code governing access to these systems; and
- all decisions of the Electronic Communications Commissioner to be subject to full appeal rights (merits and judicial review).
The Inquiry is grateful to all submitters, particularly industry players and key stakeholders who devoted considerable time and resource to the Inquiry process.
END
Further Information
The Inquiry's Final Report and other relevant information can be downloaded from the Inquiry's Website (www.teleinquiry.govt.nz). Hard copies of the report are obtainable from Pronto Print (04-499 9604). A list of "questions and answers", the Final Report executive summary, and the Inquiry's recommendations to the Government are included in the package of summary information.
For further queries, contact:
John Gilbert
Inquiry Manager
PO Box 1473 Wellington
Tel: +64-4-460 1375
Fax +64-4-460 1374
Email: teleinquiry@med.govt.nz
Website: www.teleinquiry.govt.nz
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