Minutes of Public Policy Committee - 6 March 2008

Present: David Farrar (Chair), Carl Penwarden, Julian Kersey, Pete Macaulay, Julie Kersey, Simon Riley. By phone: Judy Speight, David Diprose, Chris O’Connell.

In Attendance: Keith Davidson, Richard Wood, Jordan Carter.

Apologies: Michael Foley, Rick Shera.

Opened: 3.05pm

1. Minutes of Last Meeting – 21 November 2007

Minutes of last meeting adopted as a true and accurate record.

2. Action Points / Matters Arising from the Previous Minutes

* PIC fact sheets - ongoing

* There’s been initial discussion on Judith Tizard’s offer of us becoming advisors – aiming to set up a 3 month regular meeting.

[AP. Write, proposing regular quarterly meetings with Judith Tizard to discuss current issues and general availability for advice. - Staff]

* Cabinetisation – to include in a planned bigger meeting with Minister Cunliffe

* Letter to Ratcliffe/Crockett – have had a meeting with Telecom on Cabinetisation and Ratcliffe is set to speak at Council

* Still an interest in doing an audioconference with Peter Black when necessary

3. 2008/09 Budget and Business Plan

The Committee will review the draft Budget and Business Plan in the public policy area and finalise it for Council consideration.

The main change in the budget is for the election year fibre campaign. Staff confirmed there is sufficient budget for the work programme. Staff are looking at producing a project management chart that more clearly shows load of the work programme spread over the course of the year.

It was asked why the $10,000 budget for PIC – this is in case of an overseas speaker. Richard and Jordan will be meeting with Cunliffe’s office to determine plans for PIC this year.

[AP. Report back on meeting with Cunliffe’s office. – Richard/Jordan]

ENUM was put back in budget on assumption that InternetNZ would start engaging with industry again. The current agreement with TCF is that we (InternetNZ and TCF) will re-look at it in November 2008. InternetNZ is in discussions with one provider wanting to do an ENUM trial but that will have limited benefit as interoperability is key. No real uptake on user ENUM globally.

[AP. Two-page ENUM update report on the global situation within a couple of meetings - Staff ]

RN PP08/01 The Public Policy Committee recommends the business plan and budget, as amended, to Council.

4. Election Campaign project

A concept paper that has been discussed by members will be discussed by the Committee, and developed further based on that discussion for the March meeting and subsequent consideration by Council.

Aim is to get political commitment to true high-speed broadband rollout. This can be done by getting at least the major political parties to take on a target of national fibre to the premises. The two major themes this election year are environmental sustainability and economic growth. A case can be made here for fibre rollout.

The idea is to spend $130,000 on campaigning to draw public attention to the importance of fibre, and the need for political decisions to see it roll out. Direct lobbying of MPs will complement any public campaign. This will include our traditional election-year debate between ICT spokespeople.

We’ll use expert lobbying advice or professional campaign manager. It won’t just be an InternetNZ campaign; rather a coalition of the willing with business leaders and other NGOs.

There are two aspects – organising an appropriate campaign considering Electoral Finance Act; whether it is clearly a campaign or clearly isn’t. We may have to become a registered party.

More importantly is to make sure we know what we’re campaigning for. Fibre to all premises rings alarm bells amongst wireless people and we could get bogged down in existing govt debates about speeds. It has to be simple and compelling as a proposition that the public can engage with.

We can present a goal, but what is crucial is the date. It has to be ambitious but not easily written off. We would expect the Govt to make it an all-of-govt goal - national environmental standards, instructions to Local Govt. Investment gaps – there will be a public private mix and govt has a role in investment in gaps. The message is that we need a lot more fibre, not just to the node, and it is a national priority. That is as complicated as we should make it.

We need to elevate beyond the digital strategy. Goals for carbon neutrality don’t come from a Government review statement, it comes from high level political leadership. It’s not just a matter of Digital Strategy.

TUANZ is producing a manifesto document covering a range of public policy issues, to launch in March. This won’t be incompatible with the campaign we have in mind.

We need agreement on targets with TUANZ and other groups and look for six of the biggest mayors to sign up to the coalition of the willing

[AP. Jordan and DPF to have an initial meeting with Saunders Unsworth to float some ideas and test some concepts and bring back some more detailed proposals for options for a campaign.]

[AP. DPF to check with Ernie and Merv whether we can see the TUANZ manifesto]

5. Prioritisation of Public Policy initiatives

A staff paper canvasses the key initiatives and issues in the draft Business Plan for 2008/09 and recommends a prioritisation of these, for debate and agreement. This will then be given to Council to consider in setting InternetNZ’s priorities for the year.

The matrix in the report doesn’t mean these are the only jobs to be done. This is about prioritising projects when there is a crunch. This paper will form input into a paper for council in terms of what the priorities will be.

There were no issues on the priorities shown in the paper. Taken as agreed.

6. Verbal Updates

a. Operational Separation

Multiple reports:

Congratulations to all those involved. The Minister called Keith and Pete at the time of the announcement with his personal thanks and complimenting InternetNZ on our submission.

We anticipate another Operational Separation plan to be presented by Telecom and it is not clear whether there is another round of consultations. Telecom culture looks a lot better but still a settling process to go through there.

There is an issue about consulting on NGN in the undertakings. The ComCom views the consultations in the undertakings as limited. The Commission has announced that they will hold an enquiry into NGN. They want Telecom to consult but not lead the discussion on NGN. They’ve asked for submissions on terms.

[AP. Submission on NGN ComCom enquiry - Staff]

b. Rural Broadband project / LGNZ Forum

Multiple reports:

TUANZ are joining the working group and InternetNZ is participating in the TUANZ event.

At event there was a higher level of understanding but action is not yet following. The video conference ran very well with high quality and ability to interact from around the world so we demonstrated something very well.

The enlightened group has grown but the yet-to-become-enlightened group is a real issue. What did come through was some simple stuff Councils can do more to assist telcos, and they appeared to be some taking on board of issues like compulsory ducting.

There was clarity from Telecom about where they stand in terms of the limit of what they will do.

Local govt people feel mis-understood on what their powers are. They are stretched and there is a misunderstanding between what city and what regional councils can do. Council CEOs now recognise that this is an issue they have to plan for. Local govt is 80-odd different groups that all move at their own pace.

Rural Working party formed in Feb. It has had one meeting and will lead into input to Digital Strategy. Workshop from LGNZ led by Frank could be very useful.

[AP. Ask for LGNZ workshop notes from rural session led by Frank - Jordan]

c. Broadband Investment Forum

Jordan reported:

The meeting was called together to look at investment issues. There were three presentations – Pete, Rod Drury, Paul from NZ Institute.

They looked at letter from David Cunliffe with broadband targets. It wasn’t clear what the problem definition was and the numbers given were ones that will be largely met by Telecom’s cabinetisation plans.

It wasn’t identified what the investment problem was. Chair or Government representatives did not set the scene and gave no explanation of what they expected from the meeting. Feedback has gone to Reg.

Need to impress on political part of govt that there is a welfare issue requiring dealing with. Either the govt will resolve or not - regulated monopoly, demand aggregation, or public subsidy. Or it is a holistic solution where the economics change as networks roll out.

[AP. Report back on what happens at next Broadband Investment meeting - Staff]

[AP. A letter to the Minister with constructive proposals – Jordan]

d. Broadcasting regulation workshop report

Richard and David went on Thurs, Julian attended as well. Jordan and Wigley went on Wednesday in Auckland. David, Jordan, Richard reported:

They’re taking on too much and the scope appears too huge. There are potential huge issues and a predilection to a broadcasting regime expansion. We could form a coalition with the Press Association, Advertising Standards and TradeMe for example looking at self-regulation. There are separate issues around access and content. There is a threat of destroying benefits of Internet through application of a broadcasting model.

We need to be very careful about the scope of our involvement. The issue was discussed about converged regulation. Submissions are due 4 April.

This is an opportunity to educate broadcasting industry about the internet.

[AP. Bullet points from workshop – Richard, Jordan, DPF, Julian]

[AP. Submission - staff]

e. Banking Code of Practice

No discussion.

[AP. Write to Bankers Association asking how it’s going and remind them that Ministers are still looking for clarification - staff]

f. Cabinetisation

Multiple reports:

InterrnetNZ met with Telecom to go through AAS report and directed them towards the author of the report.

Jordan will attend meetings of the subloop unbundling working party.

Richard attended the ComCom subloop unbundling conference in February. ComCom are looking at cabinet size in the standard terms process. ISPs are looking for three other services – providing voice service from the exchange, dual feed into the copper, and wholesale cabinet port option.

SLU process expected complete by end of year. Telecom has to give a 3 year forecast of cabinets and 18 month picture. That gives access seekers notice of when they will lose customers. The original notice bypasses that as cabinetisation has started.

g. Cyberlaw Fellowship

New Cyberlaw fellow – name still confidential – looking at research topic

[AP. Prepare press release in conjunction with Susy Frankel]

[AP. Simon to meet with DPF and staff to put a timeframe around review]

7. Other Business

TUANZ Rural forum – we have a working party and will have some progress – we should at least report on that and be an early speaker.

[AP. Advise TUANZ that we’ll engage on their rural forum, do papers, want keynote speakers]

IETF Meeting 2009 or 2010 – Looking to see whether we want to bid for it. We can fit an IETF meeting in SkyCity, Auckland. Next step is to look for a major sponsor. Six day event, 2000 geeks.

Meeting Closed: 5.10pm

Date of next meeting: Thursday 3 April 2008 at 3pm

Signed as a true and correct record:

…………………………………………………

David Farrar, Member, Chair

Draft Author: Richard Wood

Draft Reviewer: Jordan Carter

Draft to PPC: 12 March 2008

Amended:

Action Points Register as at: 6 March 2008