Feeds

Kiwi carrier heads to court over split

Competition watchdog not happy

The essential guide to IT transformation

Telecom New Zealand has attracted the wrath of competition watchdog, the Commerce Commission over the carrier’s plans to structurally separate.

The Commerce Commission will issue court proceedings against Telecom NZ claiming that the company has failed to meet government regulations on non-discrimination under its current proposal.

The carrier announced earlier this week that it would split its network and retails services divisions into two distinct companies after securing the New Zealand's government tender to build 70% of the nationwide ultrafast broadband network. Under the agreement, retailers are only allowed minority stakes in the new network.

The commission alleges the company, which has both retail operations and owns a large portion of the country's telecommunications infrastructure, has failed to provide other telecommunications service providers with access to part of its network on the same terms as it did its own retail operations.

“Telecom's failure to provide this service has reduced the financial feasibility of unbundling local exchanges, reduced the extent of unbundling, and consequently reduced the extent of retail competition," Telecommunications Commissioner Ross Patterson said.

The Commission considers Telecom’s failure to provide this service to other telecommunications companies while providing it to its own retail business has caused serious harm to competition in telecommunications markets, deterred efficient investment by other companies in telecommunications infrastructure, and resulted in significant commercial gain to Telecom.

Telecom NZ said it plans to defend any proceedings brought against it and does not believe it had breached any non-discrimination obligations. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
Google has spaffed more cash on lobbying this year than Big Cable
Don't worry, it'll be cheaper when they use drones
EE fails to apologise for HUGE T-Mobile outage that hit Brits on Friday
Customer: 'Please change your name to occasionally somewhere'
prev story

Whitepapers

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.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?