Hon Paul Goldsmith | Hon David Seymour | Source: Beehive.govt.nz
Regulation Minister David Seymour and Communications Minister Paul Goldsmith have today announced the completion of the Telecommunications Sector Review (the Review). The Review cleans up outdated bureaucracy that gets in the way of innovation.
The review makes 22 recommendations across five areas. Key recommendations include cutting red tape and clearing bureaucracy for; Telecommunications Service Obligations (TSO), Telecommunications Development Levy (TDL) calculations, fibre regulations, and service access.
“If all of the recommendations from the Review are implemented, they’re estimated to deliver $35 million to $45 million in net benefits over the next decade,” Mr Seymour says.
“A significant part of the review was listening to consumers and the sector. One key thing the sector said was that the way TDL calculations were done needed to be simplified, so Cabinet has approved that change. One part of the simplification is the removal of the requirement for financial information to be externally audited, because it caused a lot of inconsistency depending on the reviewer. The new simplified TDL calculation is estimated to save providers $5 million over 10 years.
“Telco regulations were written for the copper age. Fast forward a quarter of a century, New Zealand is now in the age of fibre. Faster modern communications shouldn’t have to comply with rules created for last century’s landlines and dial-up internet. This has unnecessarily slowed service advancements.
“In a sector where success relies on fast access to the best technology regulations need to facilitate the arrival of new tech, not get in the way.”
Ministers are working through the recommendations in the report and will be making decisions soon.
“Affordable and reliable telecommunications services are something we all depend on every day for work, social connection, and access to digital services,” Mr Goldsmith says.
“It is essential that our telecommunication regulations support a competitive, growing economy, while at the same time ensure all New Zealanders can access these vital services.”
“The review found that while parts of the regulatory framework are functioning well, there are other areas where change is needed.
“I’ll be undertaking more work on certain key areas, including the Telecommunications Service Obligations, to determine the best next steps. It’s important that we carefully consider changes, to provide the appropriate regulatory settings for this vital market and for Kiwi consumers.”
The full report is available here: Telecommunications Sector Regulatory Review.
