Commerce Commission considers deregulating copper network
The Commerce Commission is weighing up whether or not it should deregulate the copper network, still used for internet and landline in 80,000 rural premises.
Telecommunications Commissioner, Tristan Gilbertson says an approach paper released yesterday for the Copper Services Investigation is the first step in the process, scheduled for completion by 31 December 2025.
The investigation could see copper deregulated outside fibre areas.
“Our copper network has been the backbone of telecommunications services for generations and has served us well – as have the regulatory protections wrapped around it. This investigation is about making sure that regulation keeps pace with change and remains fit-for-purpose,” he explains.
The Copper Services Investigation is focused on determining whether competitive, affordable alternatives to copper exist – and, if so, whether removing or reshaping copper regulation is in the best interests of consumers.
Gilbertson says it comes at a time of unprecedented technological change in the telecommunications sector, including the arrival of satellite-based broadband which the Commission claims could be a game-changer for rural New Zealand.
“This investigation coincides with a shift in the dynamics of competition in rural areas that we’ve never seen before,” Gilbertson says.
“Satellite-based services such as Starlink are bringing urban levels of broadband performance to the most remote areas of New Zealand,” he says. “Mobile operators and regional wireless internet service providers are also expanding the capacity and reach of their broadband services.”
Gilbertson says the Commission’s monitoring shows that less than half of rural households outside fibre areas are served by copper.
“Rural consumers are increasingly shifting off copper as demand for more robust connectivity and internet performance grows,” he says.
The Commission is seeking submissions from stakeholders on the proposed approach by 5pm, Wednesday 22 May 2024.
It will then invite cross-submissions by 5pm, Friday 7 June 2024.
The Commission must complete the investigation by 31 December 2025 and determine a recommendation to the Minister.
