1. H V ROSS ROBERTSON (Labour—Manukau East) Link to this
to the Minister for Communications and Information Technology
What reports has he received on improvements for telecommunications in New Zealand?
Hon DAVID CUNLIFFE (Minister for Communications and Information Technology) Link to this
I have seen many positive media reports on the recently announced approval of Telecom’s operational separation undertakings. Robust operational separation has been a priority for the Government and the Parliament, and it is one of a number of measures to roll out faster, cheaper broadband to all New Zealanders.
H V Ross Robertson Link to this
Can the Minister therefore tell the House whether this is the last of the Government’s pro-competitive measures?
Hon DAVID CUNLIFFE Link to this
No; operational separation is only a part of the Government’s pro-competitive telecommunications strategy, which includes rolling out the broadband pathway and refreshing the Digital Strategy. In a regulatory context, there are still key issues to be resolved. No agreement has been reached with Telecom in regard to the telecommunications service obligation. I have only just received input from the Telecommunications Carriers Forum on this issue, and I intend to seek further input from other stakeholders. The Government will therefore be further considering the telecommunications service obligation over the next month or two.
Pita ParaoneTēnā koe, Madam Speaker. Does the Minister have any concerns that the new telecom entities will retain their present monopoly position following separation, and what checks are in place to ensure that competition and fairness remain in the telecommunications market?
Hon DAVID CUNLIFFE Link to this
The robust three-way operational separation of Telecom removes both the ability and the incentive for key divisions of Telecom to discriminate between their own retail divisions and competitors. That will create a level playing field at the wholesale level, allowing more players into the retail market and meaning greater choice and lower prices for consumers.
H V Ross Robertson Link to this
Can the Minister therefore tell the House how Monday’s announcement that Telecom will be split into three stand-alone business units will help our economy?
Hon DAVID CUNLIFFE Link to this
As I said, this is only part of the Government’s telecommunications strategy, and we will be rolling out further policy initiatives in months to come. The operational separation of Telecom will increase competition and boost the number of people able to access broadband-based products throughout New Zealand. I am pleased to say that Telecom is committed to the accelerated roll-out and delivery of advanced broadband services to cities and towns of more than 500 lines by 2012. Telecom expects 84 percent of lines to be capable of a speed of 10 megabytes a second, and 89 percent to be capable of 5 megabytes a second. This will be a win-win for the economy, as broadband is a key driver of productivity and innovation.
I seek leave to table an article from the New Zealand Herald: “Industry welcomes Telecom separation plan”.
Hon DAVID CUNLIFFE Link to this
I seek leave to table a favourable editorial from the Dominion Post dated 1 April.
Madam SPEAKERHon DAVID CUNLIFFE Link to this
I seek leave to table a recent article in the “Business Herald” setting out the basis for Telecom’s three-way operational separation.
Hon DAVID CUNLIFFE Link to this
I seek leave to table an article from today’s “Business Herald” noting that Telecom will be forced to maintain rural telecommunication services.
Hon DAVID CUNLIFFE Link to this
I seek leave to table a press release from Telecom New Zealand hailing a new era for telecommunications.