Telecommunication Issues

While broadband is seen as crucial to New Zealand's future as a knowledge economy and the government had developed a digital strategy based on broadband there are many complaints about its price and quality. Local councils and the Government are investing in IT networks of their own to provide the broadband necessary for their development. Consistent reports from the OECD show that New Zealand is well down the broadband penetration list.

While in 2006 there was a reported 60% increase in residential broadband, lifting New Zealand to more respectable levels, although still lagging most developed nations and the definition used for broadband in New Zealand (256k or faster) is considered by many to be inadequate. In 2006 the long-awaited government policy on Local Loop Unbundling (LLU) was finally been introduced in New Zealand. This will supposedly permit NZ Telecom’s competitors to build their own services over the Telecom network, independent of the incumbent.

However, these services will still only be as good as the telecom infrastructure and there are indications that the infrastructure is insufficient to deliver the high speed that are possible with the introduction of ASDL2x slated by Telecom for roll out in 2007. There is an argument that too little is being invested in networks too late, that LLU is insufficient and other legislation or regulation will be necessary and that the regulatory powers of both the Commerce Commission and the Telecommunications Commissioner are insufficient..

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