Clear in favour of telecoms overseer

By DANIEL RIORDAN

Clear Communications has come out in support of the telecommunications inquiry's recommendation of an industry-specific regulator.

Telecom branded the recommended electronic communications commissioner a "commissar" because it said there was a risk a regulator would seek to expand its role into other areas of electronic communications.

But, in its response to the inquiry's draft recommendations, Clear said the commissioner would be an essential backstop when industry efforts at self-regulation failedand would deliver "significant long-term welfare gains" for the industry and consumers.

Clear said the commissioner should operate separately from the Commerce Commission, ensuring a greater focus on the industry itself.

However, Clear disagreed with the inquiry's recommendation that local loop unbundling - the opening to competitors of direct access to Telecom's copper network - should not happen now.

It said the industry could not afford to wait the three to five years it would take for the deployment of alternative broadband networks to Telecom's.

"Every other comparable country has recognised that local loop unbundling is a key enabler of advanced services such as high-speed internet access, and will have local loop unbundling in place by the end of 2000," Clear said.

It also argued against the inquiry's recommendation that incumbent cellular operators be forced to wholesale services or open their networks to new entrants with compatible facilities during their early years.

Clear said that although the prospect of mandatory roaming should be monitored, the commissioner should not be overloaded during the "crucial set-up period."

"On the basis of the Australian experience, the existing mobile operators may compete against each other to commercially offer wholesale services, especially if they faced regulation if they failed to do so."

Niche operator Newcall Communication has suggested that a levy be placed on every "chargeable" phone call to cover costs Telecom faces in meeting its Kiwi Share obligation to provide a universal service.

Telecom last week put the cost of servicing unprofitable rural customers at close to $100 million.