KEY POINTS:
Important decisions on telecommunications - including how Telecom's monopoly on phone lines will be broken - are being delayed because of a shortage of qualified staff at the Ministry of Economic Development, lobbyists say.
Telecommunications Users Association of New Zealand chief executive Ernie Newman said a couple of major projects were awaiting action from the Government.
They included splitting Telecom into separate divisions to encourage competition in the broadband market.
"I do feel some sympathy for Telecom, which is waiting to restructure its business based on the way the Government determines and is obviously in a hurry to get that information," said Newman.
"There is concern about proper resourcing at the Ministry of Economic Development for it to be able to do that."
Telecom would not comment yesterday.
The Telecommunications Amendment Act, forcing Telecom to open its network to competitors, was passed under urgency during Parliament's last sitting days last year.
The act requires Telecom to split its operations into three divisions - network access, wholesale and retail.
The Ministry of Economic Development, under the direction of Communications Minister David Cunliffe, is responsible for working out how this will be done.
Newman's comments come after the Government said last week it was again delaying its decision on mobile termination rates - the amount mobile phone operators charge Telecom for calls made from Telecom landlines to their cellphones.
The Commerce Commission recommended in 2005 that mobile termination rates should be regulated, saying it would lead to cheaper cellphone calls.
The Government asked the commission to reconsider its decision - which it has done, again recommending regulation.
Now it is up to the Government to decide whether it implements the recommendation.
Late last year, Cunliffe said he had a conflict of interest and delegated the decision to Economic Development Minister Trevor Mallard.
"At some point, is anything going to actually happen?" said Newman.
The MED's development manager of information technology, Reg Hammond, said full-time staffing in the information technology department had increased from 14 to 16 in the past three years, but that did not include secondments to the minister's office or the Department of Prime Minister and Cabinet.
The ministry was interviewing applicants for two new positions.
Cunliffe said he was confident the ministry had adequate resources.
"It is a dynamic time for the portfolio, and people are working hard," he said.
"Some of that work is being done by external agencies, such as the Commerce Commission which is implementing local loop unbundling.
"Where appropriate, key policy work, for example separation undertakings, is being assisted by external specialists to supplement ministry baseline resources."
He said work on the determination was proceeding and a discussion document was likely to be issued next month.
"Our timelines are far more aggressive than was attempted in the UK or Australia. I am confident that we are on track."
Internet New Zealand executive director Keith Davidson said yesterday he was not convinced that the small number of Ministry of Economic Development officials working on the split of Telecom could cover issues in the depth that the importance of this area of policy deserved.
"To make the operational separation of Telecom a reality needs top quality policy, legal, technical and financial input on the Government's side," he said. "It is a complex task."
"Using consultants to provide such input rather than officials with the long term public interest at the top of their agenda seems like a second-best solution."
Decisions, Decisions
* The Commerce Commission said in August 2005 that mobile termination rates, excluding 3G phones, should be regulated.
* Economic Development Minister Trevor Mallard said last week that the decision had been deferred.
* Communications Minister David Cunliffe says he expects to issue a determination on the split-up of Telecom next month, but observers are concerned about a possible delay because of a lack of qualified staff at the Ministry of Economic Development.
