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Telecommunications Reforms

The Government has announced its response to the recent ministerial telecommunications inquiry.

A specialist Telecommunications Commissioner, to be housed within the Commerce Commission, is to be appointed. It will be the Commissioner's job to resolve disputes over telecommunications services that are to be regulated, and recommend if further regulation is needed, as well as monitor and enforce Telecom's Kiwi Share obligations.

Improvements would be made to Telecom's Kiwi Share obligation, extending its geographic coverage to current levels, and clarifying that dial up Internet calls count as free local calls.

It will also see the upgrading of Telecom's network to provide line speeds of 9.6 kps to 99% and 14.4 kbs to 95% of residential lines over 2 years from the passage of legislation. Telecom will bear the cost of the upgrade - about $100 million - although the wider industry will contribute to any ongoing Kiwi Share losses.

There is to be tighter monitoring of Telecom's performance in areas such as 111 emergency calls and dial tone availability.

Although the inquiry team recommended doing so, it is not intended to enshrine the Kiwi Share agreement in legislation at this time.

A number of services will be regulated, with interconnection to Telecom's fixed telephone network, wholesaling of its fixed network services, and number portability first off the rank.

Thanks to 'NewsRoom'

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