Feeds

Kiwis dump telco 'regulatory holiday'

Joyce dances on the public-private highwire

The smart choice: opportunity from uncertainty

New Zealand’s government has decided to abandon the regulatory holiday it had offered to companies building fibre broadband in that country, under its UFB (ultra-fast broadband) programme.

The government had proposed freedom from Commerce Commission price regulation to companies building networks as contractors to the government-owned Crown Fibre Holdings during the eight-and-a-half year network build.

Critics said this would allow the network builders to dictate wholesale terms until the “regulatory forbearance period” expired, leading in turn to higher retail prices for other retailers accessing the fibre.

New Zealand’s communications minister Steven Joyce has instead announced that the Commerce Commission will be allowed to regulate prices offered under the scheme. If it imposes significantly lower prices for wholesale access, the government will “wear the risk”, Joyce said.

For example, a lower return from operators to Crown Fibre Holdings might be managed by deferring repayments to the government.

In addition, Joyce committed the government and the Commerce Commission to considering investment and innovation in network rollout when looking at wholesale price regulation.

New Zealand’s broadband rollout comprises two distinct initiatives: the UFB, which covers 75 percent of households, and the Rural Broadband Initiative (RBI), which guarantees 5 Mbps or better to most of the remaining 25 percent of households.

The UFB is being delivered through a government-owned company, Crown Fibre Holdings, which in turn lets local contracts to bidders from the private sector. The regulatory holiday was designed to attract more interest from private bidders in the network build. ®

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Microsoft unsheathes cheap Android-killer: Behold, the Lumia 530
Say it with us: I'm King of the Landfill-ill-ill-ill
All those new '5G standards'? Here's the science they rely on
Radio professor tells us how wireless will get faster in the real world
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.