Guide updates telco rules

Competition watchdog the Commerce Commission has issued draft guidelines detailing how it regulates New Zealand's $5 billion telecommunications industry.

The guidelines arrive at a time when dominant telcos are seeking to curb further regulation of the market.

The commission said the guidelines were an "update" and intended to provide greater clarity to stakeholders.

They outline the commission's role under the 2001 Telecommunications Act and the economic principles and other factors it takes into account when making regulatory decisions such as whether regulation would distort investment decisions and render companies' assets useless.

Telecom spokesman Ian Bonnar said it was pleased the commission was trying to provide greater certainty, but the guidelines were "still relatively light on what regulatory and economic principles the commission will sign up to and apply consistently ..."

"We look forward to engaging further with the commission on these issues."

Vodafone spokesman Paul Brislen said it was still reading the guidelines and would comment "in due course".

Vodafone and Telecom have recently contested moves by the commission to regulate the fees that cellphone companies charge for routing calls and texts from other providers to customers.

Business New Zealand has called for more emphasis on reaching commercial solutions rather than a "regulate first" approach to encourage investment in the sector.

Orcon chief executive Scott Bartlett said the guidelines confirmed the commission was committed to ensuring competition flourished. The state-owned telco has sought regulation from the watchdog on several issues.

The commission said regulation of the industry had focused on providing access to infrastructure that was vital for delivering services but uneconomic for others to duplicate. It must review whether regulations should remain at least every five years.

The commission had issued guidelines in 2002. Since then it had made some key regulatory decisions and the new draft guidelines would update its approach.

Last year the New Zealand telecommunications industry invested $1.5 billion and banked more than $5b in revenues, according to the commission.

- © Fairfax NZ News