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Fibre optic port - Source: ONE News / CNN -
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Access to ultra-fast broadband will be more open for service providers and new businesses will not be burdened with inappropriate regulation following changes to the government's ultra-fast broadband (UFB) initiative, Communications and Information Technology Minister Steven Joyce says.
The changes follow extensive feedback from the telecommunications industry and the first round of UFB bids received by Crown Fibre Holdings, the government-owned company set up to facilitate the roll-out of the UFB plan.
They would further improve the business model for local fibre companies and facilitate additional co-investment from the private sector, Joyce said.
Respondents to the Crown's initial invitation to participate (ITP) said they supported offering open access at both the passive (dark) and active (lit) fibre optic layers of the ultra-fast broadband network.
Service providers who would purchase ultra-fast broadband services and sell them to consumers were particularly supportive of the move, Joyce said.
"Careful consideration has been given to the issue of open access."
The ITP was revised to ensure that open access to ultra-fast broadband at layers one and two would be provided, he said.
The government was also changing the ITP model to "avoid burdening infant businesses investing in emerging technologies with inappropriate regulation", Joyce said.
Those who responded to the initial ITP, including Telecom, Canadian company Axia Netmedia and the Regional Fibre Group (a consortium of 19 companies spearheaded by Vector), would now have a chance to revise their proposals.
The Telecommunications Users Association, TUANZ, says they generally support the changes and called the decision "practical and commendable".
"The question of which Layer (dark 1 or lit 2) will result in the more competitive downstream market has exercised the minds of many people in and around the industry for eighteen months.
"The decision to require LFCs to offer both is a pragmatic and effective solution. It will allow the buyer, rather than the seller, to choose the service they require," said TUANZ in a statement.
TUANZ says they do not expect the decision to amend proposals will result in significant delays.
Telecom's undertakings
Joyce has also called for submissions on Telecom's request to amend
some of the regulations it operates under that it says will become
redundant under the UFB.
Telecom wants to:
- suspend the forced bulk migration of broadband customers being
served by the old wholesale broadband service onto the new
wholesale broadband service
- remove the requirement to migrate 17,000 customers onto a new
VoIP over copper service by 31 December 2010
- remove the requirement to build a new set of wholesale
operational support systems that are not consistent with the
industry structure implied by UFB.
Joyce says the changes proposed by Telecom could have implications
for other service providers and he has opened submissions until
July 23.
