KEY POINTS:
Prime Minister Helen Clark sent a stern message to Telecom and its rivals in her opening speech to parliament yesterday.
"There's still a long way to go," she said, referring to the state of telecommunications in New Zealand.
The new reforms had helped New Zealand to catch up to other countries which had enjoyed more competitive settings - but more needed to be done, she said.
The Telecommunications Amendment Bill, passed late last year, will see Telecom split into three divisions, and will allow the Government to force Telecom to open its network to rivals and create a more competitive environment.
Clark said the Government needed to continue to challenge the telecommunications sector and regions to lay down new high speed infrastructure, adding: "This year the Government will be refreshing its strategies for broadband and high speed connectivity."
The Government is to decide whether it should set prices to allow other companies to access Vodafone and Telecom's mobile networks, and on mobile termination rates.
A digital content strategy and a freeview digital TV platform is to be launched.
Telecommunications User Association of New Zealand chief executive, Ernie Newman, said the speech was one of a number of powerful signals that the Government has lifted telecommunications to the top of its list for making a breakthrough in economic development.
"It is yet another affirmation that not only the Government, but Parliament is concerned about the backward state of New Zealand's telecommunications and is determined that this should be corrected for future generations," said Newman.
The Government's impatience with Telecom surfaced in March when chief executive Theresa Gattung made a speech approving the use of confusion as a marketing tool. The Prime Minister said her comments were "inappropriate."
