Summary of Key Government Decisions
[ Last Updated 15 November 2005 ]
Contents
Promoting Economic Objectives
| Regulatory institutions | - New Telecommunications Commissioner located in the Commerce Commission
- funded by industry; specialist staff; full time if necessary
- Key functions of Commissioner to:
- resolve disputes over regulated services
- report to Minister on desirability of regulating additional services
- monitor and enforce Kiwi Share obligations
- Industry Forum not mandatory but expected to be established
- Commissioner can approve codes of practice
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| Forms of regulation | - Designation - obligation to provide the service; sets out pricing principles to be applied in resolving disputes. Services to be designated initially are:
- Interconnection with Telecom's fixed telephone network
- cost-based (TSLRIC) or bill and keep
- Wholesaling Telecom's fixed network services
- retail price minus net costs saved
- Number portability, including 0800 number portability
- Deferred designation (with deadline) - sets a deadline for designation to encourage industry to resolve issues
- Fixed-to-mobile carrier pre-selection from Telecom's network
- Specification - an obligation to provide the service, but no pricing principles prescribed
- no services to be specified immediately
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| Process for regulating new services | - Minister or Telecommunications Commissioner initiates
- Commissioner studies and reports to Minister
- Minister considers and, if agrees, designates by Order-in-Council (Regulations)
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| Process for resolving disputes | - Initial price determination
- Full pricing review if requested; 3 Commissioners decide
- Appeal on full pricing review only (points of law and judicial review); decision binding meantime
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Promoting Social Objectives
| Kiwi Share | - Upgraded Kiwi Share requirements
- extends geographic coverage to current levels
- clarifies that free local calls include dial-up data (e.g. Internet) calls
- extends 9.6kbps to 99% and 14.4kbps to 95% of residential lines over two years. (Telecom to bear capital cost of this upgrade - industry to contribute to any ongoing KSO losses)
- Improved funding mechanism - industry continue to contribute, but more transparent and competitively neutral
- Telecom to undertake costing of Kiwi Share
- final cost determination made by Commissioner
- Telecom seeks Commissioner's approval to oncharge proportion of net operating costs to competitors
- Commissioner determines what proportions firms should pay
- Improved monitoring and enforcement
- Commissioner to monitor performance against agreed standards
- Commissioner withholds Telecom's right to oncharge competitors in the event of non-performance.
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| Information Society Initiative | - Partnership between Government, industry and communities, including to promote access to bandwidth across New Zealand
- Details to be decided early next year
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| Electric fence interference | - Government to work with key stakeholders to facilitate solutions to electric fence interference with Internet access in rural areas
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| Universal service obligations for higher speed data | - Monitor the uptake of higher speed data services and new technologies
- Consider in 18 months the case for:
- a universal service obligation for higher speed data
- competitive tendering of Kiwi Share/USO
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