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Politics wins the day, consumers lose a decade

Consumers will now face a decade without a referee watching over competition in the ultra fast broadband space, says TelstraClear CEO Allan Freeth after today’s developments on the UFB Bill.
The Finance and Expenditure Select Committee report today recommended no material change to the major problem areas of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Bill, which has now returned to the House for its second reading.
“Given Minister Joyce’s unwavering faith in his own views and the politics of the whole situation, I am hardly surprised by the outcome,” says Dr Freeth. “But I am disappointed by the lack of respect shown by the Minister to the industry and consumer groups alike, and the inevitable cost and loss of choice for New Zealanders.”
“I had hoped this Government would have learned from recent history which has seen Telecom fined a record $12 million for anti-competitive behaviour, and mobile termination rates forced down only after action by the Commerce Commission.
“The Commerce Commission has been central in past and recent history for the development of competition in telecommunications. It was the party that the industry and consumers turned to when competition failed, prices were high, and choice was limited.
“It is a shame to see us heading back to the bad old days. This Bill is a suboptimal, world-worst solution for what could have been a world-leading network. It will end up costing the nation economically, stifle innovation and will inevitably have to be changed as the damage it will inflict on consumers and the country becomes apparent to all.”

TelstraClear has worked hard to alert New Zealanders to the dangers of the Bill, and if consumers want choice and price competition in fibre broadband of the future they should call, text, or e-mail their MP to express that view. Details can be found at www.parliament.nz/en-NZ/MPP/MPs/MPs/
“While TelstraClear will work hard to help the Government achieve its vision and make the UFB scheme a success, we lament the opportunity for what may have been and, if this Bill is passed, expect we will all rue the politically-driven second-rate piece of law we will all have to work with in the future,” says Dr Freeth.

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