Key Industry EventsS
1998 16
January 1998
• Discussion Paper on penalties, remedies and court processes under the Commerce Act 1986 is released by Ministry of Commerce. The paper proposes that increased penalties and remedies apply for anti-competitive behaviour.
• Telephone number portability is introduced into New Zealand, by Telecom New Zealand, Clear Communications and Telstra New Zealand’s networks, using call forwarding.
• Telecom announces an ADSL1 trial (using its existing twisted copper network to deliver high speed data and video services) in Wellington. This was followed by an announcement in October of its intention to roll out commercial service of xDSL technologies in 1999.
• Clear announces it will start trailing LMDS2 as a mechanism for wireless local loop service (for voice and data) to business customers in main centres from September.
May 1998
• Saturn launches a residential local telephony service in the Hutt Valley, with a rate of NZ$29.95 per month compared to Telecom’s NZ$35.66. This is the first residential local wireline competition in New Zealand. Saturn subsequently expanded to part of the Kapiti Coast and some of Wellington’s western suburbs by the end of December. Saturn is continuing to expand its residential telephony service to all of Kapiti and Wellington city and suburbs. It intends to complete its investment of NZ$230 million in the Wellington area by the end of 1999.
June 1998
• Telecom announces the closure of its First Media cable TV service at the end of July. This followed the decision in November 1997 to stop the rollout of the hybrid fibre coax (HFC) network at 68,000 homes passed (in Auckland and Wellington). Telecom said First Media was closed due to the poor take-up rate of potential customers (approximately 3%) and the decision to concentrate on trialling xDSL technologies for delivery of high speed data to residential customers. Telecom is still evaluating ways to utilise its HFC network, possibly to deliver high speed data services to residential customers.
• The Treasurer releases a Strategic Overview Paper on the telecommunications industry prepared by Treasury and the Ministry of Commerce. The paper highlighted key reviews underway of numbering administration and portability issues, penalties and remedies under the Commerce Act and the Telecommunication (Disclosure) Regulations.
July 1998
• The Commerce Commission releases findings on Telecom’s competitive response to Saturn’s entry (a $5 loyalty discount). The Commission considered that Telecom was pricing above marginal cost. Regional pricing per se, is not necessarily a breach.
• WorldxChange launches a partnership with retail chain Deka to sell its discounted national and international toll services to residential customers. As of September, WorldxChange claims 6000 customers.
• In response to other service providers price reductions, Telecom reduces international toll prices by an average of 20%, with reductions on some routes and times by over 50%.
August 1998
• NetTel launches service as a reseller for Telstra, offering national and international service using calling cards, targeting niche residential and business customers.
• British Telecom announces that it is increasing its stake in Clear to 50% taking over MCI's 25% shareholding.
• BellSouth (USA) and Singapore Technologies Ventures announce sale of BellSouth New Zealand to the Vodafone Group for NZ$750 million
• The Ministry of Commerce releases a discussion paper on options for telecommunications numbering policy. The Minister of Communications sets a tight deadline, 30 November, for the industry to reach agreement on satisfactory voluntary arrangements for numbering administration and resolving longer term number portability issues.
September 1998
• Superway announces it is commencing a roll out of a cable network in the North Shore of Auckland with the intention of targeting business users at first, supporting high-speed data, telephony and cable television.
• The Ministry of Commerce releases a Telecommunications (Disclosure) Regulations Discussion Paper which proposes that Telecom be required to produce separate financial statements for its local loop and its other telecommunications businesses and to undertake a full economic costing of the Kiwi Share Obligations.
• Iridium launches first global mobile personal communications by satellite (GMPCS33) service worldwide using handsets, offering service to all parts of the globe.
• Telecom, Vodafone, Telstra, Newcall and Teamtalk agree to arrangements to resolve telecommunications numbering issues. The Number Administration Deed (NAD) provides for: independent administration of each party's telecommunications numbering resources; a process for determining New Zealand's ongoing number portability requirements; and binding arbitration to efficiently resolve any disputes arising between parties with reference to agreed numbering principles to guide the arbitrator. Some parties refuse to sign up to the agreement in its present form.
• The Government issues statement of economic policy to Commerce Commission on telecommunications numbering. The Ministers of Communications and Enterprise and Commerce state that the Commerce Commission is the appropriate forum to determine whether the deed agreed between telecommunications companies raise any competition concerns.
• The Government announces that the Ministry of Commerce will auction 32 management rights and approximately 1600 licences in the 2 GHz band of radio spectrum, which spans the frequencies 1710-2300 MHz. The rights to be auctioned are expected to support a range of technologies associated with the next generation of digital cellular mobile services, known as PCS4.
| Telecommunications Main | 1999 | 2000 | 2001 |
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1. Asymmetric Digital Subscriber Line. This technology digitises signals over conventional twisted copper wire line, enabling high-speed data service to be offered along the same lines as conventional switched telephony. back to February
2. Local Multipoint Distribution System. A super high frequency wireless technology which is cellular based, used to deliver local telephony service and high speed data. back to April
3. Global Mobile Personal Communications by Satellite. This term is generally used to describe the new generation of worldwide satellite based personal mobile telephony services. Globalstar and ICO are expected to launch similar services to Iridium in the next 2 years. back to November
4. Personal Communications Services. This refers primarily to localised mobile phone services, servicing small areas, such as factories or a residential area. It is also now used to refer to 3rd generation mobile services or IMT-2000 (International Mobile Telecommunications), which is designed to combine GMPCS, cellular mobile and PCS services into a seamless mobile telecommunications service. back to December
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