Commission Seeks Views On Evolution Of Fibre Regulation
The Commerce Commission has issued an Open Letter initiating a programme of work looking at the evolution of the regulatory regime for fibre broadband services.
Telecommunications Commissioner, Tristan Gilbertson, says the new fibre regime is working well, but needs to keep pace with market developments.
“Maintaining the certainty required for ongoing investment in world-class fibre means having the right rules in place now and into the future – so we’re launching a programme of work to ensure we keep the balance right.”
Mr Gilbertson says this work will start with a review of the underlying framework of rules for fibre services – called the Fibre Input Methodologies (IMs).
“The Fibre IMs are still relatively new – so we’re proposing a targeted review focused on three key issues: cost of capital, the rules for new capital investments, and the controls applied to Chorus. We also expect to identify opportunities for streamlining current rules and processes as we look across the IMs as a whole.”
The Commission is proposing to review the cost of capital for fibre in parallel with the other sectors it regulates under Part 4 of the Commerce Act 1986 – energy networks and airports.
Mr Gilbertson says the Commission would then move on to look at other aspects of the fibre regime, which are subject to review, including:
“This work is critical to ensuring the regime remains well calibrated and continues to deliver for competition and consumers,” says Mr Gilbertson.
The Commission is calling for views on its Open Letter, framing the IM review process, by 5pm on Tuesday 29 April 2025.
Views will be sought on the other aspects of the regulatory regime targeted for review at a later stage as the Commission’s work programme develops.
New Zealand’s fibre networks were built between 2012 and 2022 by four regulated fibre wholesalers— Chorus, Enable, Northpower, and Tuatahi — in partnership with the Government under its Ultra-Fast Broadband initiative.
On 1 January 2022, the Commission implemented a new regulatory regime for fibre, as required under the Telecommunications Act. This recognises the natural monopoly characteristics of the infrastructure and is designed to promote consumer interests over the long term through three interlocking measures:
Together, these measures protect quality for New Zealand consumers, while also ensuring fibre providers have continued incentives to invest, innovate and find operational efficiencies.
The Telecommunications Act contains various review mechanisms designed to ensure the regime remains fit-for-purpose, including:
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