Minutes of Public Policy Committee - 4 October 2007

Present:

David Farrar (Chair), Hamish MacEwan, Carl Penwarden, Simon Riley, Chris Streatfield, Michael Wigley, Janet Mazenier, Dean Schmidt. 

Phone:

Sarah Putt, David Diprose, Frank March, Rick Shera, Pete MacAulay, Stuart Fleming.

In attendance:

Richard Wood, Keith Davidson, Jordan Carter (by phone).

Opened: 9.05am

1. Apologies

Sam Sargeant, Chris O’Connell, Judith Speight, Julian Kersey

2. Minutes of Last Meeting – 17 August  2007                                               

Minutes adopted as a true and accurate record – subject to removing reference to David as Vice-President.

3. Action Points / Matters Arising from the Previous Minutes                

* Action point: Talk to banks and see what is happening regarding Code: Staff

* Electoral finance bill – a submission was filed

* Keith has been in touch with David Skilling regarding cooperation in respect to broadband reports.

4. 9.20 - Digital Summit (Janet Mazenier)

MED’s Janet Mazenier presented on the Digital Summit and the process for Digital Strategy refresh:

The Summit is just one part of the refresh project. There are 200 registrations so far and more are sought particularly from business to ensure the right balance, with a target of 500 total. Invitations are public.

The Minister is prioritising the Digital Strategy now that Op Sep is “done”.

The Digital Strategy is aligned to the economic agenda, with primary focus on business. The issue is that big business is okay at using technology but what is of concern is middle tier and small business. It is concerning that this part of New Zealand isn’t more forward-thinking in terms of keeping up with the pace – there are major mindset issues and we need to be thinking about a  cultural change programme for New Zealand - about skills, access, helping people understand, and international competitive issues.

The MED has a small group involved and is working in a fiscally constrained environment. MED is working with State Services, for example with extending a national procurement framework and developing a broadband map, looking at what can be done until there is a clearer steer from Ministers as to investment.

On the issue of mindset change, many people think “we have email and a website” so we’re okay. The opportunities include that we’re a nation of innovators and we’re eight hours ahead of the rest of the world.

Timeline on the Digital Strategy refresh will be March for comment and May for final.

Unlikely to be any major input of Govt funding into next version outside of some particular areas of investment.

5. Misc Reports

a. Broadband Campaign

On operational separation we got what we were asking for.

InternetNZ has asked Michael Wigley to go through the determination. When Telecom responds to that document we will comment on Telecom’s response.

Simon noted we should get ahead and look at NGN as an industry issue and how the new network company’s relationship with industry will work. In the UK there is an NGN association.

The Council is looking to have Telecom CEO Paul Reynolds come in and talk.

It was suggested Peter Black, chair of NGNuk, would be worth talking to

Action point: Arrange an audioconference with Peter Black: Staff

Rick noted we should be making sure that in the operational separation plan no limits are put on potential structural separation. This would align with our position of supporting structural separation but seeing operational separation as delivering on those benefits in a more timely fashion.

b. Copyright

Copyright Amendment Bill is at second reading and number 7 on the order paper. The Greens will make our points, forcing Government to respond on them.

Action point: When it reaches Committee stage, prepare advice to ISPs: Staff

Action point: Check with Greens if they’ve had any luck with talking to members of other parties: Richard

c. Cyberlaw Fellow

Vic Uni has started recruitment process for year 3 of the Cyberlaw fellowship.

The tiger team have identified a process to make a decision on Cyberlaw for the following three year term.  This would involve a management committee with 3 from InternetNZ, 3 from Vic Uni and 3 specialist lawyers. This also supports a search for further sponsorship opportunities.

There will be a committee including Rick to look at the whole project in terms of value, continuance and format – due April/May next year.

The publication from last year is at the printer. We are taking 400 copies of the report – there will be a distribution to the members. We should then send to selected lawyers and ISPs.

d. Anti-spam

InternetNZ, TCF, Marketing Association and ISPANZ have endorsed the ISP Spam Code of Practice. The signing up of ISPs has begun, undertaken by InternetNZ office.

The jointly branded consumer and business spam education brochure produced with the DIA has received response from half a dozen ISPs with 13800 brochures to be printed and distributed through ISPs.

DIA hasn’t made a decision on an automated analysis system for spam.

This InternetNZ project has reached a conclusion.

6. 10.00 - TSO and Broadband USO issues

Simon reported on TSO policy, noting some of this is his personal view:

InternetNZ people who were at the LGNZ/InternetNZ Rural Broadband Workshop met to see if there was consensus. The workshop was useful to clarify some of the thinking. The consensus was that TSO in its current form was dead, and if it is to continue it should be contestable and on a regional basis.

In subsequent discussion and meetings it was considered that the TSO as a mechanism is not an option for the future and certainly not for broadband. Looking at some of the international reports it would be impossible to put up a policy argument for a broadband USO. We will need to put up a proposal for a rural development fund targeting those particularly in need, rather than deal through a TSO or USO.

There are perhaps 22,000 commercially non-viable customers and it is likely easier to target them directly rather than impose a tax on the industry. From a political point of view, in a fiscally challenged environment, it is not possible to create a TSO 2.0

Our recommendation might be to phase it out over three years because of transition arrangements. Emergency access is the showstopper issue but that is for the TCF and relates to VoIP as well. Our view would be TCF work with Govt to come up with that and it may take years.

Michael Wigley talked about the TSO submission:

There is a risk of scope creep – we have to limit it. The answer perhaps on the telephony parts of the TSO document is to leave it and respond to cross submissions as necessary. Focus only on the broadband aspect of the document (In question 9). It is important to talk to stakeholders who might have aligned interests and tap into their work, and vice-versa.

Simon noted that problem definition is an issue in putting forward something meaningful, but that work is apparently going on in MED around that.

A tiger team was formed of Michael, Simon, Richard and Jordan.

7. Peering Report

The External Peering Group draft report was tabled, with the aim of public policy committee members giving their feedback prior to presentation to Council. The aim is to then have a public consultation process and forum.

Hamish noted that it appeared late in the day to be seeing the report and questioned whether consultation had been sufficiently broad in terms of all stakeholders of the Internet in New Zealand, in particular those outside industry and content providers.

It was noted that PubPol and TechPol now have the opportunity to consider the report and then Council. It was confirmed that Government agencies did have the opportunity to take part in the consultation and a public consultation process is planned where anyone can give feedback prior to a final document.

It was acknowledged that incoming councillors could have done with a fuller briefing on the background to the document and process.

8. Fibre Reports           

The draft NZ Institute document was tabled.

Keith has made contact with NZ Institute and they are keen for collaboration.

This is Phase 1 of their process and Phase 2 is looking at implementation of some of the key parts. They are looking for a technical sounding board, which would be more for Tech Pol.

A potential criticism the report may face is the ability of industry to deliver in terms of resources available.

9. Internet and Legal Jurisdiction seminar

The idea is to have a workshop with primary presenter being Philip Greene, presenting to invited attendees. e.g. Solicitor General, Crown Law Office, judges etc, on the issues of Internet and legal jurisiction, primarily suppression orders.

Action point: Create a legal jurisdiction paper and send to staff by 11^th October for Council approval: David Farrar.

10. Mobile market submission

Michael has prepared a submission on mobile market competition and how that can have a wider impact, which he has provided free of charge. He noted the potential conflict of interest that he acts for NZ Communications but said that this was prepared from an InternetNZ perspective and it is acceptable for InternetNZ to borrow from industry submissions when there is alignment.

The date for such a submission is overdue but still doable. It was agreed this was relevant and should go to evote. A more reader-friendly version of the document was requested.

Action point:  A council E-vote on the submission: Keith

Action point: Rework Michael’s document: Richard and Campbell.

Meeting closed: 11am

Date of next meeting: Thursday 8 November – 9am, time to be confirmed.

Signed as a true and correct record:

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David Farrar, Chair

Action Points Register as at: 4 October 2007