Vodafone and TelstraClear are seeking limits to what the telco regulator can do, according to submissions made to parliament’s Finance and Expenditure Committee, which is currently discussing the Telecommunications Regulation Bill.
I am not convinced there is a strong argument in favour of regulating the mobile side of the telecommunications industry.
Changing the regulatory framework of the telecommunications industry is needed quickly, says Telstra which claims the regulatory uncertainty is costing it the deployment of its next-generation networks, while at the same time providing a leg up for its competitors.
The wholesale deal between Telecom and TelstraClear last week is seen by financial analysts Macquarie Equities as a big win for Telecom, suggesting the government will back away from changes to the regulatory environment as a consequence.
Telecom's threat that the share market would tumble should the government endorse unbundling of its network is a spurious argument, says one financial expert.
Government needs to bring pressure to bear on "the dominant player" for higher quality and more competitive broadband services says InternetNZ president Colin Jackson.