Key Industry Events 16
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Telecommunications Players with Web Sites •
Telecom New Zealand Ltd
•
Telecom New Zealand Access Standards
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Clear Communications Ltd
•
Vodafone Communications Ltd
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Telstra Saturn Ltd
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Global One Communications Ltd
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WorldxChange Ltd
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Call Plus Ltd Compass
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Communications Ltd
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Ihug
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Team Talk
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Walker Wireless Ltd
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City Link
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United Networks
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Tangent (Vector)
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Zip
•
DigiPlus
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STATISTICS
• s Phone lines per 1,000: approximately 550• s Cell phone usage per 1,000: approximately 600 15
FACTS
The general assessment of New Zealand's telephone system is that they have excellent domestic and international systems. Internationally, they have submarine cables to Australia and Fiji, and two Intelsat satellite earth stations (Pacific Ocean). New Zealand has been making steady progress in its telecommunications infrastructure since the mid-1980s. This progress exists strongly in:
• s Broadband, ISDN, DSL and other internet services used by both businesses and residential customers;• s Submarine cables between the islands of New Zealand and between New Zealand and Australia; and• s Mobile and cellular systems.
LIBERALIZATION / DEREGULATION 16
Until the late-1980s, telecommunications and other sectors, such as the airlines, railways and banking, were operated by the public sector. Specifically, the New Zealand Post Office was a key public enterprise with a monopoly on telecommunications services, banking and postal operations. The Government comprehensively reformed the telecommunications regulatory environment over the period 1987-1989 with the aim of improving the industry’s economic performance and increasing consumer benefits by creating competitive, open entry telecommunications markets supported by general competition law.
"On 1 April 1987 a new State-owned Enterprise (SOE), Telecom Corporation of New Zealand Ltd was formed, by the separation of the telecommunications element of the Post Office from its postal and banking arms. The regulatory and policy advice functions of the former Post Office were transferred to the Department of Trade & Industry (subsequently the Ministry of Commerce, and now the Ministry of Economic Development).
Between 1 October 1987 and 1 April 1989 the supply of customer premises equipment was progressively deregulated. On 1 April 1989, all legal restrictions on telecommunications services market entry were removed. Telecom was privatized in September 1990, and competition in telecommunications services developed from 1991 with the signing of the first interconnection agreement."
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s Substantial price reductions
for telecommunications consumers;
•
s Improved service availability,
in terms of access to new services, fault service response, and
new service installation times;
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s Ongoing investment in the New Zealand
telecommunications market. Particularly from BCL, Clear, Global
One, Saturn, TeamTalk, Telecom NZ, Telstra NZ, Vodafone (formerly
BellSouth NZ) and WorldxChange;
•
s The development of competition
in the provision of leased circuits and data services, cellular
service, long distance calls and freephone service;
•
s The development of competition
for business telephone services in metropolitan business centers.
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THE GOVERNMENT'S ROLE IN RECENT YEARS 16
"In October 2000, the Minister of Communications released the final report from the Ministerial Inquiry into telecommunications. The Inquiry recommends:
• s A single regulatory framework covering all electronic communication services with the establishment of the Electronic Communications Commissioner.• s The designation (enabling pricing and access obligations to be set) of interconnection with Telecom's fixed wire network, including data tail access and wholesale retail services by Telecom.• s The specification (enabling access obligations to be set) of interconnection between all networks, carrier pre-selection from all networks, wholesaling of 2½G mobile services, roaming between compatible 2½G mobile networks, co-location of mobile cell sites and Sky Television's conditional access system.• s That access objectives should be applied to assess whether specification or designation of a service is desirable. The access objectives are to promote the long-term interests of existing and potential end users of electronic communications services by any or all of the following:
• s Facilitating efficient competition in markets for electronic communications services;• s Promoting any-to-any connectivity to the extent that it is efficient; and• s Encouraging the efficient use of, and the efficient investment in, the infrastructure by which electronic communications services are provided.
In December 2000, The Government announces its response to the Ministerial Inquiry into Telecommunications. The objective of the new regime is to ensure delivery of cost efficient, timely, and innovative telecommunications services on an ongoing, fair and equitable basis to all existing and potential users. The key features of the new regime are:
• s The establishment of a Telecommunications Commissioner in the Commerce;• s Commission with the powers to resolve disputes between industry players over key services;• s The immediate designation (enabling pricing and access obligations to be set) of:
• s Interconnection with Telecom's fixed telephone network;• s Wholesaling of Telecom's fixed network services; and• s Number portability, including 0800 number portability;
• s The deferred specification of fixed to mobile carrier pre-selection on Telecom's network;• s The provision for the Telecommunications Commissioner to make recommendations to the Minister of Communications for regulation of other services in the future; and• s The upgrade of Kiwi Share to provide data capability to virtually all New Zealanders (9.6kbps to 99% of residential lines and 14.4kbps to 95% of residential lines).
In May 2001, the Telecommunications Bill was introduced to Parliament. This Bill contains the legislation to implement the new telecommunications regulatory regime proposed by the Government in response to the recommendations of the Ministerial Inquiry into Telecommunications." 16
NARRATIVE AND ANALYSIS
The general assessment of New Zealand's telephone system is that they have excellent domestic and international systems. In addition, their telecommunications infrastructure regarding mobile and cellular systems, submarine cables, and broadband internet access is far-reaching and comprehensive. The Government has taken and continues to take a proactive role in maintaining and expanding telecommunications by enacting policies and procedures by which private companies are regulated.
The majority of people in New Zealand use cell phones and have access to the internet, and are enjoying the benefits of reduced pricing over the last few years for these services, including regular telephone services.
In addition to reaching major cities in New Zealand, the South Waikato District Council (SWDC), in partnership with Rural Networks, is currently working on a project to expand broadband wireless into rural areas of the country.