The Commerce Commission will investigate whether services Telecom provides to other telecommunications companies to be resold should be deregulated.
Telecommunications Commissioner Ross Patterson says Telecom was providing those services on commercial terms without being obliged to do so by specific commission decisions.
"There are also a significant number of Telecom's resale products that have had minimal or no uptake by other telecommunications companies," Patterson says.
The investigation would examine whether regulation should be removed, or amended to streamline the number of services covered.
"Regulatory intervention should be scaled back in areas where there is effective competition," Patterson says.
"Nor should regulation impose or maintain burdens which are unnecessary."
Retail services such as Homeline are offered by Telecom to wholesale customers to resell at a discount to the retail price.