Source: Radio New Zealand
123RF
The Commerce Commission says fibre landlines account for only 0.36 percent of fibre connections.
The competition watchdog is recommending deregulating wholesale fibre landline services, saying they have had little uptake compared to other ways of making calls.
Telecommunications Commissioner Tristan Gilbertson said regulation was introduced in 2018 as the country moved away from copper connections.
He said landline use had declined in New Zealand by over 70 percent in the last 10 years.
“At the time landline services were still widely used, and regulation ensured there was a fibre-based option that could support that demand as Kiwis moved off copper.
“However, our analysis shows that very few Kiwis ended up using the regulated service, because demand shifted away from landline calling towards the use of mobile and internet-based alternatives.”
Gilbertson said the rapid shift towards alternative ways of making calls from home had reduced the need to regulate the fibre landline service.
“Regulation should remain in place only where it continues to benefit consumers, and that’s no longer the case here. With very low uptake, and strong competition from alternatives, it’s appropriate for regulation to step back.
“Deregulation does not mean landlines will disappear. Retail providers will continue to offer landline-style services over broadband to customers who want them. This recommendation simply recognises that the regulated wholesale input is no longer needed for this to happen.”
The Commission’s recommendation had been put to Minister for Media and Communications Paul Goldsmith for his approval.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand