Telcos urged to embrace competition

By PETER GRIFFIN

All is not well in the global telecoms industry, according to the New Zealander heading an international telecoms industry group.

Ernie Newman, the chief executive of the Telecommunications Users Group and chairman of its international counterpart Intug, claims carriers worldwide face "increasing public antagonism, regulatory creep and re-nationalisation" if they do not embrace competition in their markets rather than go all out to fend it off.

Newman's comments, delivered at a telecoms industry conference in Hawaii this week, follow Telecom and its supporters' success in persuading the Commerce Commission not to force open Telecom's last-mile network to competitors.

Newman, who represents telecoms users rather than the industry itself, called for a culture change among operators who were as preoccupied with litigation and regulation as they were with technology development.

The often arbitrary nature of the interconnect deals between telcos was hurting competition.

"This negative culture brings the whole privatisation model into a degree of disrepute and worryingly, if it continues, risks exposing the industry to pressure for re-nationalisation at some future time," he said.

Attempts by carriers to raid each others' markets resulted in them retreating "bloodied and bruised".

He also took aim at mobile operators who, while reaping the benefits of improving technology and rising call volumes, had been slow to pass on savings to consumers.