Govt turns down plea by telco group on broadband

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The Government has rejected yet another bid from the telecommunications industry seeking changes to proposed broadband legislation.

An 11-strong contingent, including TelstraClear, Vodafone, 2 Degrees and the Telecommunications Users Association wrote to Parliament this week outlining solutions to the group's concerns with the law.

The Telecommunications (TSO, Broadband, and Other Matters) Amendment Bill paves the way for the building of the Government's ultrafast broadband scheme and would remove the Commerce Commission's ability to regulate prices on the planned internet network until the end of 2019.

The Government has argued this is necessary to offer certainty that prices would remain stable and investors would get a reasonable return on money put into the scheme.

However, Tuanz chief executive Paul Brislen said an alternative to the "regulatory holiday" would bring the Commerce Commission back into the picture while also providing certainty to investors.

The group suggested the Government adopt a "special access undertaking" approach, which was introduced by Australian telecommunications regulators in 2002.

"Regulatory certainty could be provided to access providers by ensuring an approved [undertaking] prevailed over any subsequent attempt to regulate prices," Brislen said

"At the same time, regulatory oversight of prices could be maintained by allowing the Commerce Commission to review and approve the price terms in [such an undertaking]."

However, Communications Minister Steven Joyce said there were obvious problems with the group's proposal.

"It doesn't appear that bidders would have the certainty over the price book that they are needing during the crucial build phase of the network."

Joyce also said the special access undertaking approach would take too long to enact. "I'm not sure this adds anything except a delay."