TSO provisions worry carriers

By CHRIS BARTON

Both Telecom and Clear are concerned that new telecommunications service obligations (TSOs) could be used to force the industry into funding high-speed broadband internet access for all New Zealanders.

The TSO provisions in the new telecommunications bill open the way to make the Kiwi share obligation contestable or transferable to other carriers.

That has prompted concerns that the Government might mandate broadband access and have it supplied by TVNZ's broadcasting arm, BCL, forcing carriers to pick up the multibillion-dollar cost.

The proposal is not as ridiculous as it sounds. French Prime Minister Lionel Jospin last week announced a $US1.5 billion ($3.7 billion) project to make high-speed internet access available throughout France within five years.

As part of a far-reaching technology initiative, the Government and industry will also pool another $US180 million to bring mobile-phone service to the 8 per cent of France that does not have it.

Communications Minister Paul Swain was quick to pour cold water on the idea.

"That's a big Government policy issue that has not been discussed. I want to allay any carriers' fears that this would happen."

The Government had been working on broadband initiatives for rural communities, which it hoped to report on next month, he said.

"I think the industry will be pleasantly surprised. The Government is not going to require funding of infrastructure. We're looking at helping communities to bundle their broadband demands for competitive tendering by various companies."

Part three of the new bill sets out rules under which TSOs can be established via contracts and understandings with the Crown. Telecommunications service providers can be reimbursed for providing services to groups or geographical segments.