The Government has today confirmed the Ministry for Regulation’s fourth sector review will look into New Zealand’s telecommunications sector.
Minister for Regulation, David Seymour said the Ministry for Regulation and the Ministry of Business, Innovation and Employment will work closely with industry leaders, consumer groups, and regulators to develop terms of reference for the review for Cabinet consideration.
“Hearing from everyday New Zealanders will be a cornerstone of the review process,” said Mr Seymour.
“Telecommunications touch almost every part of modern life. With 7.22 million active connections – around 1.4 per New Zealander – this sector is as essential as electricity and water.
“From education and healthcare to e-commerce and entertainment, reliable digital infrastructure powers economic growth and daily life. But when regulation falls behind, innovation slows and costs rise.
“In a high-cost economy like ours, regulation isn’t neutral – it’s a tax on growth. That’s why it’s time to take a fresh look.”
Communications Minister, Paul Goldsmith said the Government had decided to implement the review on the back of concerns raised by the sector.
“Telecommunications are used by almost every New Zealander every day. It’s a multibillion-dollar industry contributing to around 2.5% of New Zealand’s GDP,” Mr Goldsmith says.
“We want to ensure we have the right regulatory settings in place for this important market, to support competition, foster innovation and help stimulate economic growth.
“Better connectivity means improved reliability for businesses, people accessing digital healthcare, and remote learning for kids. Reliable and high-quality digital connectivity networks improve productivity and are essential to growing our economy and easing the cost of living.”
The review scope will not include:
- – the Telecommunications Development Levy (TDL)
- – the Radiocommunications Act 1989 (radio spectrum)
- – the Telecommunications (Interception Capability and Security) Act 2013
- – the vertical separation of wholesale and retail fibre services that applies to Chorus and the other local fibre companies.
