Hailed by the government as "landmark legislation", the Telecommunications Act came into force on 18 December 2001. The aim of the Act is to reform the telecommunications industry in New Zealand.
The Act is similar to the second draft of the Telecommunications Bill but incorporates some new changes:
Designated and Specified ServicesChanges were made to the types of services that fell under the two categories of regulated services (ie: services to which a carrier cannot be denied access).
Designated services - the services for which pricing principles are specified - now include:
interconnection with fixed public switched telephone network (PTSN); price capped residential local access and calling service; retail services (including bundled services at wholesale prices) for resale; local, national toll-free and cellular telephone number portability; and fixed PSTN to mobile carrier pre-selection (non-code access).There are three specified services (there were previously none) being:
national roaming; co-location on cellular mobile transmission sites; and co-location of equipment at sites used by Broadcast Communications Limited.Specification of mobile roaming and co-location were key issues on the Government's agenda that it had intended to introduce during the select committee process. Due to lack of support from the select committee, national roaming and co-location were introduced as specified services in the Bill via a Supplementary Order Paper.
Access to a network operator's network for national roaming is subject to conditions such as an assessment by the Telecommunications Commissioner of the access seeker's bona fides and consideration of any capacity constraints on the incumbent's network. In assessing an access seeker's application for co-location on cellular mobile transmission sites the Commissioner will take into account factors such as the access provider's current and reasonable forecast requirements for capacity on the relevant facilities, and existing contractual obligations.
Further telecommunications services may be designated or specified as the Commissioner deems appropriate.
Industry BodyThe Act requires the establishment of an industry forum to develop codes and standards for the sector. Although negotiations for establishment of the forum started last May, a lack of consensus among the parties almost brought progress on the forum to a standstill in early March. The key sticking point concerned voting rights on matters relating to non-designated services. Some carriers wanted all carriers to have a power of veto on all votes concerning non-designated services while other carriers argued that majority voting was the only effective way of making progress on industry codes. The parties have now reached agreement that any decision reached by the forum on codes for non-designated services will require a unanimous vote with each of the three major telcos (Telecom, TelstraClear and Vodafone) and the smaller industry players sharing 2 votes between them before the code is put into practice. However, a simple majority is all that's required to get an issue tabled and sent to a working party for assessment. Now that the voting issues have been resolved, the forum is soon to be established by key industry participants. Interested parties are invited to apply to the Commission for registration. The Commission will commence registration of applications on 2 April 2002.
Telecommunications CommissionerThe Government has appointed expatriate Douglas Webb as the new Telecommunications Commissioner. The Telecommunications Commissioner is a member of the Commerce Commission and will be responsible for resolving disputes over regulated services. He will be required to work with the industry to promote competition and determine disputes between the parties.
Key Issues: The Telecommunications Act came into force on 18 December 2001 Specified Services now include:
-national roaming;
-co-location on cellular mobile transmission sites; and
-co-location of equipment at sites used by BCL. A Telecommunications Commissioner has been appointed to resolve disputes over regulated servicesThis is a general summary only and should not be taken as a substitute for specific advice.
For further information, please contact:
michael.sage@simpsongrierson.com – partner
karen.ngan@simpsongrierson.com – partner
alicia.wright@simpsongrierson.com – senior associate
simon.vannini@simpsongrierson.com - associate
sarah.ford@simpsongrierson.com – solicitor
x-tech group Simpson Grierson Web site:
x-tech group Simpson Grierson