InternetNZ welcomes Commerce Commission UBS Determination

“InternetNZ
has represented the voice of users in the debates before the Commission
throughout the year. We have invested over $100,000 on behalf of
Internet users in seeking a successful outcome to this regulatory
process.
“We have argued throughout that the UBS is a
component of an Internet service, and as such should be provided to any
access seeker in an unconstrained manner.
“The
Determination released today meets this requirement. The Commission’s
view lines up with our own. The UBS is to be supplied to TelstraClear
at a single price point (around $27 per month) and at the maximum
technically feasible speed on any given line.
“By
taking this approach, the Determination ensures that TelstraClear will
have maximum flexibility in providing a broad range of
price/service/speed combinations, without reference to Telecom’s
existing retail offerings or any downstream speed restrictions imposed
by regulation.
“While this Determination only applies
to TelstraClear, I am sure that other companies will seek access to the
UBS on the same basis, which would make the whole market more
competitive,” Colin Jackson said.
“Telecom’s arguments
that an unconstrained downstream speed threatens access to broadband by
some users are not accepted as a reason to constrain the service –
either by the Commission or by InternetNZ. Telecom already offers
unconstrained services on its network, and there is no separate risk
created by allowing TelstraClear to do the same.
“Our
position of 22nd in the OECD proves that high prices and low speed
services to date have limited the public’s appetite for broadband
Internet access. This Determination through delivering stronger
competition will see lower prices and faster, better services for all.
“This
is one small but significant step forward for the Internet in New
Zealand, and InternetNZ welcomes it. New Zealand still suffers the
slowest broadband in the world. I hope the next step may be to remove
the 128kbps uplink limit in the regulated service – the next obvious
way to improve broadband services.
“We urgently need to
take New Zealand up the OECD broadband rankings. We are disappointed
that Telecom may choose to further delay access to better broadband by
challenging this determination in the Courts. New Zealand is already
way behind the mark internationally for uptake of broadband, and
Telecom's opposition to this determination is not in the best interests
of New Zealand and its economy.
“We welcome Telecom’s
stated ambition to secure better broadband uptake, and urge Telecom to
see this Determination as a step forward in the process of delivering
this for New Zealanders, and not take legal steps to further delay its
implementation,” concluded Colin Jackson.

ENDS

For further information contact:
Colin Jackson, President
president@internetnz.net.nz, 021 393 685
Keith Davidson, Executive Director
exedir@internetnz.net.nz, 021 377 587