Telecommunications Act 2001

157AA Minister must review regulatory framework

• (1) The Minister must, not later than 30 September 2016, commence a review of the policy framework for regulating telecommunications services in New Zealand, taking account of the market structure and technology developments and competitive conditions in the telecommunications industry at the time of the review, including the impact of fibre, copper, wireless, and other telecommunications network investment.

  (2) The review must—

  • (a) consider whether the existing regulatory framework under the Telecommunications Act 2001 is the most effective means to—

    • (i) promote competition for the long-term benefit of end-users; and

    • (ii) promote the legitimate commercial interests of access providers and access seekers; and

    • (iii) encourage efficient investment for the long-term benefit of end-users, by—

      • (A) providing investors with an expectation of a reasonable return on their investment; and

      • (B) providing sufficient regulatory stability, transparency, and certainty to enable businesses to make long-term investments; and

    • (iv) support innovation in telecommunications markets, or deregulation where sufficient competition exists; and

  • (b) assess whether alternative regulatory frameworks, including (without limitation) generic price control, would be a preferable and more effective means of achieving these outcomes.

  (3) In carrying out the review, the Minister must—

  • (a) consult with interested parties, including the Commission, industry participants, consumers, and Māori; and

  • (b) take into account—

    • (i) the extent of network coverage of services provided on fibre, copper, wireless, and other telecommunications networks; and

    • (ii) the level of investment in fibre, copper, wireless, and other telecommunications networks, and the ability of access providers to recover that investment within a reasonable period; and

    • (iii) the ability of access providers to achieve, within a reasonable period, reasonable rates of return on their investment in telecommunications networks that adequately reflect the risks assumed by those access providers when the relevant investments were made; and

    • (iv) the level of competition in relevant telecommunications markets; and

    • (v) the effects of the regulatory framework under this Act on investment in fibre, copper, wireless, and other telecommunications networks, and on outcomes for end-users; and

    • (vi) the sustainability of the regulatory framework under this Act, given developments in technology and convergence of traditional telecommunications markets; and

    • (vii) the importance of any regulatory intervention being proportionate, having regard to the problems being addressed, the size of the relevant market, and the number and size of the potentially regulated entities; and

    • (viii) developments in wireless solutions and whether they should be part of any telecommunications regulation; and

    • (ix) experience in comparable jurisdictions and economic relations with Australia, weighed against what is appropriate for New Zealand conditions and the make-up and history of New Zealand's telecommunications markets; and

    • (x) any other matters that the Minister considers relevant.

  (4) The Minister must use his or her best endeavours to ensure that the review is completed no later than 31 March 2019.

  Section 157AA: inserted, on 1 July 2011, by section 25 of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).