Telecom internet regime probed

By RICHARD BRADDELL

WELLINGTON - Issues raised by Telecom's 0867 internet access regime have to be tackled with urgency, says Commerce and Communications Minister Paul Swain.

He has asked for an official's paper, saying 0867 and the potential for one party to buy all the third generation mobile spectrum to be auctioned next month has to be looked at.

On the spectrum, he said he wanted a sale process that avoided the kind of long-running arguments that have gone on for the 10 years since Telecom was sold.

Meanwhile, the Government would consider 0867 and its relationship to the Kiwi share, which guarantees free local calling, and would consider the legal opinions already obtained.

"Free and open access to the internet is dear to my heart."

But while it has been argued that Telecom's action in unilaterally changing the internet access environment was anti-competitive, Mr Swain said it was essential to sort through the "claim and counter-claim and try to get through to the real story."

Of importance was the eventual convergence of voice and data over the internet and the impact on the Kiwi share.

"Telecommunications has been identified as critical for New Zealand and I am looking forward to making sure telecommunications is going to make the necessary base for the knowledge economy."