Competition reduces need for telco regulation, says Commerce Commission

Telecom is obliged by the commission to connect an ISP to its backhaul network. Photo / File

Growing competition to parts of Telecom's phone and internet network is reducing the need for infrastructure regulation, says a Commerce Commission review.

The commission announced yesterday that more of Telecom's backhaul network faces competition from other lines companies.

The backhaul transports phone and internet data from local lines to the core cables running up the length of the country.

It allows phone companies or internet service providers (ISPs) access to Telecom's copper "local loop", which means they can use the telco's network to connect with customers and do not have to put their own lines in the ground.

Telecom is obliged by the commission to connect an ISP to its backhaul network (allowing access to a local loop) if there is no similar infrastructure in the area.

"The number of competitive links has increased because of [local copper loop] unbundling and consequent deployment of backhaul links by alternative providers," said Telecommunications Commissioner Ross Patterson.

The commission found 79 of Telecom's 168 primary backhaul links faced competition from other infrastructure companies.

Nine out of the company's 37 secondary backhaul links were in a competitive environment.

A primary link provides a connection from a local loop exchange point to a larger exchange while a secondary link transports data between towns and cities.

A provider was deemed a competitor to Telecom even if its network was not directly hooked up to a local loop, the review said.