Watch on telecom services could be extended

There are "reasonable grounds" to look at extending the regulation period on 10 of the 13 services incorporated in the Telecommunications Act 2001, the Commerce Commission says.

Services recommended for investigation include interconnection, retail, national roaming and number portability services, and co-location on cellular mobile transmission sites.

Regulation of the services is due to expire on December 19, 2006. The commission may investigate whether or not to recommend to the Minister of Communications that the period be extended by up to two years.

Comments from interested parties on the preliminary view must be submitted by the end of the month.

Ernie Newman, chief executive of the Telecommunications Users Association of New Zealand, said regulation was still needed.

"The overall regulatory regime is a long way short of the point at which we could say we've now had the regulation, the competition has emerged and, therefore, we no longer need regulation," Newman said.

Bruce Parkes, Telecom general manager government and industry relations, said news of the preliminary view was "not particularly controversial".

Yesterday, Telecom was also asked by the commission to show that its dial-up internet calls meet the required connection speeds.

The commission said Telecom had complied with all other quality measures in its annual assessment of the telecommunications service obligations (TSO) agreement.

Parkes said Telecom was gathering the data and he was confident of passing the final measure.

If Telecom is found not to have complied, its contribution to the TSO fund would increase.

TSO costs are apportioned, based on revenue, among the eight telcos operating in New Zealand. The fund sets levels for residential telecommunications services and prices, aimed mainly at isolated and rural areas. It covers emergency services, connecting calls, free local residential calls and internet data speeds.