New Zealand - Telecommunications Regulatory Overview

Synopsis

Regulatory changes to the telecommunications industry have become a part of the market landscape since the Telecommunications Act was passed back in 2001. There have been many amendments to the bill in an effort to assist the market to become a dynamic level-playing field for the operators and provide enhanced services for customers. Regulatory developments have occurred in the areas of fixed lines, mobile, frequency spectrum and wholesale access.

Regulatory changes over the years have covered fixed and mobile number portability, spectrum auctions, mobile access pricing and termination rates, and the Telecommunication Development Levy, a replacement on the previous Telecommunications Service Obligation.

In late 2011 Telecom New Zealand, the incumbent operator, was split so as the fibre network could be deployed by the demerged network access entity Chorus. The Ultra-Fast Broadband Network (UFB) and Rural Broadband Initiative (RBI) that will see fast broadband deployed across the countryside.

In this report we outline recent key regulatory developments in the New Zealand telecommunications market and including developments on the TSO and Telecommunications Relay Service. Information on the Telecommunication Development Levy that will fund some of the outlay for Rural Broadband Initiative is provided. An overview of the Telecommunications Dispute Resolution is also provided. Information on the proposed 700MHZ spectrum DSO and auctions is also provided.

Background information on previous regulatory developments on these and others issues can be found in our separate reports at: www.budde.com.au.

Companies mentioned

Companies mentioned in this report include – Vodafone, 2degrees, Telecom, CallPlus, Hautaki Ltd, TelstraClear, Chorus, Orcon, Compass Communications, WorldxChange.

Hot topics and technologies mentioned

Hot topics and technologies mentioned in this report include – number portability, regulatory issues, spectrum, digital dividend, digital switchover.

Table of Contents

• 1. Synopsis
• 2. History
• 3. UBA, UCLL, LLU and UBS access market developments
  • 3.1 Minor changes post Telecom and Chorus demerger
• 4. Mobile regulation developments
  • 4.1 Mobile termination rates
  • 4.2 Micropayments using PayforitNZ approved
• 5. Spectrum market
  • 5.1 Background information
  • 5.2 Spectrum and auctions
    • 5.2.1 Introduction
    • 5.2.2 Management Rights Regime
    • 5.2.3 3G Spectrum reviewed
  • 5.3 Digital Switchover (DSO)
• 6. Telecommunications Service Obligations (Kiwi Share)
  • 6.1 Background
  • 6.2 Telecommunications Development Levy – 2010 - 2017
  • 6.3 TDL changes – 2012
• 7. Telecommunications Relay Service (TRS)
  • 7.1 Overview
  • 7.2 New services in 2011
  • 7.3 Cost of the TSR
• 8. Telecommunications Dispute Resolution (TDR)
  • 8.1 Scheme overview
• 9. Number Portability (NP)
  • 9.1 Overview
  • 9.2 Statistics
• 10. Related reports

• Table 1 – Telecom and Vodafone network termination rates – 2009 - 2014
• Exhibit 5 – Anticipated DSO timetable
• Table 2 – Annual cost of TDL – 2010 - 2017
• Table 3 – TDL qualified revenue and TDL charges – 2010 - 2011
• Table 4 – Sprint payments from TRS/TSO – 2004 - 2011
• Table 5 – Total ported numbers mobile versus fixed – 2009 - 2012
• Table 6 – Total ported numbers mobile versus fixed – 2009 - 2012

• Chart 1 – Sprint payments from TRS/TSO – 2004 - 2011
• Chart 2 – Overview of fixed versus mobile ported numbers – 2009 - 2012
• Chart 3 – Overview of monthly porting of local and mobile numbers – 2008 - 2012

• Exhibit 1 – UBA services background information
• Exhibit 2 – Regulatory timeline – scheduled UBA and other services launch by service variant
• Exhibit 3 – Overview of licensed versus unlicensed spectrum
• Exhibit 4 – Overview of managed spectrum parks
• Exhibit 6 – Liable people (operators) for the TDL levy – 2012
• Exhibit 7 – Possible liable people (operators) for the TDL levy – 2012