Rural NZ faces shift as copper network deregulation looms

Last month, telecommunications commissioner Tristan Gilbertson wrote to Minister for Media and Communications, Paul Goldsmith, recommending the complete deregulation of New Zealand’s copper network.

Gilbertson says the Commerce Commission’s final recommendation reconfirms what was set out in the draft recommendation released earlier this year, that copper regulation is no longer needed to promote competition in the areas where it remains and that it should be omitted from Schedule 1 of the Telecommunications Act.

“We have concluded that competition from alternative technologies is now sufficient to justify removing copper regulation,” he writes.

In the letter, Gilbertson says that approximately 97% of rural consumers have three broadband alternatives available – LEO satellite, GEO satellite, and Fixed Wireless Access.

“These alternatives are often cheaper and better performing than copper, which is increasingly less reliable and more expensive to operate and maintain,” he argues.

New Zealand is not alone in decommissioning its copper network. Spain has recently shut down its copper network while Singapore and Sweden are also nearing full retirement of the technology.

Meanwhile, Sandra Matthews, national president of Rural Women New Zealand (RWNZ), says that while members of her organisation understand and accept the Commission’s reasoning, there are still concerns about the consequences for people in rural communities, “particularly those without access to alternative technologies, with medical needs, or for whom digital literacy remains a barrier”. She says that as copper services are withdrawn, those who still rely on them will risk rising costs as the remaining network becomes more expensive to maintain.

“For many rural families and older residents, copper is not just a communications service, it’s their lifeline.”

She says that Chorus needs to commit to a well-resourced, transparent public education campaign in order to ensure a successful transition away from copper.

This will help users understand their options, support them in moving to new technologies, and ensure they are aware of the limitations of new technologies, such as the possible loss of service during power outages,” Matthews adds.

“Connectivity is no longer a luxury, it is fundamental to the livelihoods, safety and personal wellbeing of all New Zealanders.”

Federated Farmers rural connectivity spokesperson Mark Hooper says that currently rural connectivity is not up to standard, with cellular reception “patchy at best”, meaning the withdrawal of the copper network adds to concerns from many rural New Zealanders about connectivity. “All it’s going to do is widen the connectivity gap between those who live in main centres like Auckland and Wellington, and the rest of us who live in the provinces,” he says.

Chorus general counsel Kristel McMeekin says the infrastructure company is committed to ensuring a smooth transition to more reliable and fit for future technologies.

“We will work closely with the Commerce Commission to make sure there are clear processes in place to support people as the copper network is retired over the next few years,” she says.

Consumers can visit the copper retirement section of the Chorus website to check their address and explore available alternatives.