New Zealand - Analysis - Moving into 2007

Synopsis

In May 2006 the New Zealand government launched its telecommunications reforms. Telecom’s reaction has been positive and it has promised better wholesale services, better broadband services and the speeding up of its NGN activities, which will allow it to deliver nationwide ‘digital lifestyle’ products by 2008. Can it be trusted to deliver all of this in a competitive way? There is no doubt that strong regulatory sticks need to be at the ready to ensure a positive outcome, but perhaps the government should, for the moment, hold off using them. An industry-driven, voluntary process would definitely be preferable. Although currently trailing behind Australia we expect New Zealand to quickly catch up, with ADSL2+ becoming widely available, and with a target for the end of 2007 – that the majority of broadband users will be on affordable ADSL2+.