KEY POINTS:
The Government is allowing an extra two weeks for people to make submissions on Telecom's proposal to split off its network into a structurally separate company.
Communications Minister David Cunliffe said there had been a good response to the consultation document put out on April 5, but more comment was being sought as Telecom's submission - to make a structural rather than operational separation of its network business - was outside the scope of the main proposal.
Mr Cunliffe told reporters the consultation process had to be changed because of the importance of the proposed changes.
"That is a very complex matter and it will need to be analysed in detail both for its benefits and risks. We want to do that job thoroughly and we want to hear from the industry and the community their views before we make any decisions on it."
The Telecommunications Amendment Bill set out objectives for the separation process and Mr Cunliffe said there would need to be good arguments to move away from that.
"It specifies a three-way operation split, now if we are going to achieve the objectives of that Act by other means then the alternative means would have to be shown to be better than what the Act itself envisages. There's a burden of proof that is yet to be satisfied.
"Given the importance of this issue, I am allowing two weeks for interested parties and the public to comment on Telecom's proposal."
Mr Cunliffe said operational separation was supported by Parliament to remove the ability and incentives for Telecom to discriminate against its wholesale customers.
"Unless and until a voluntary structural separation model can be demonstrated to better achieve the outcome sought by the Telecommunications Amendment Act, operational separation remains the requirement of the Act," he said.
Mr Cunliffe said the Government's operational separation proposal followed the British model and Telecom claims that it differed were wrong.
"Telecom also asserts that separation will delay the introduction of local loop unbundling (LLU) and unbundled bitstream services (UBS). I do not accept that."
Mr Cunliffe said both were on a separate fast track by the Commerce Commission.
InternetNZ, the internet Society of NZ, which manages the ".nz" domain name, has already welcomed Telecom's proposal but believes the path set out by the Ministry of Economic Development (MED) was generally a good one.
InternetNZ deputy executive director Jordan Carter said the ministry had taken a narrow approach to the services included in the separation requirements, how new services might be covered, and the development of Telecom's new network.
The society said there was a need for transparency and industry consultation about new network developments.
However, it was encouraged by the ministry's focus on inputs rather than outcomes, and the proposed division of assets.
"InternetNZ believes the Telecom proposal is somewhat light on detail, but we believe a solution between Telecom and the Government that respects the need for a strong and robust separation and delivery of equivalence is the best possible outcome for the telecommunications market," Mr Carter said.
Submissions on Telecom's proposal should be provided to the Ministry of Economic Development no later than 5.00pm on May 15.
- NZPA
