Broadband bill passes first reading

File photo / NZH

A bill the Government's needs to implement its broadband policies passed its first reading today.

Communications and Information Technology Minister Steven Joyce said the Telecommunications Service Obligations (TSO) was an important step towards improving the availability, quality and price of telecommunications services.

The bill sets out regulatory changes to enable the Government to implement its two fast broadband initiatives:

* Ultra fast broadband (UFB) to be rolled out to 75 per cent of New Zealand.

* Rural broadband initiative (RBI) aimed at reaching 80 per cent of rural households.

Under the UFB initiative and the RBI, all network providers are able to tender to partner with the Government to build new broadband infrastructure. The bill provided the legislative framework for the initiatives, Mr Joyce said.

"The bill ensures that the networks that will be built are open and can be accessed on fair and equitable terms by all network providers, and that there are provisions to enable the Commerce Commission to monitor and enforce open access requirements to these networks," Mr Joyce said.

The bill also introduces an information disclosure regime to ensure transparency around the operation of the networks.

It also reforms the TSO framework. The TSO framework ensures ongoing supply of basic residential telephone at a fixed price across New Zealand and the Telecommunications Relay Services for the Deaf and hearing impaired.

Mr Joyce said the bill introduced a new funding mechanism to consolidate industry contributions toward telecommunications sector obligations -- a new levy called the Telecommunications Development Levy.

"The bill will ensure that the TSO operates fairly, transparently, and effectively - with reduced cost of compliance for the sector."

The bill passed its reading on a voice vote.

Labour MP Clare Curran said the Government made big promises about delivering broadband but was slow to deliver.

"All Labour's plans were canned, and now it has a new complicated scheme which may or may not deliver UFB at prices New Zealanders can afford," she said during the debate.

Labour was not guaranteeing support beyond the first reading.

"Labour has deep concerns that this bill weakens hard-fought legislative protections for consumers and exposes the public to an unnecessary risk of future monopolistic practices."

- NZPA