NZ watchdog plans fibre rules shake-up for 2029 reset

New Zealand's Commerce Commission has proposed changes to the rules governing fibre broadband networks, focusing on investment assessment, capital spending processes, and several technical aspects of cost treatment.

The regulator is reviewing the Fibre Input Methodologies, which set key regulatory settings for fibre providers under the Telecommunications Act. This is the first review since the framework was established.

Telecommunications Commissioner Tristan Gilbertson said the review reflects a rapidly changing market and the growing role of fibre broadband in daily life and business.

"Fibre broadband is used by millions of Kiwis every day to work, study, conduct business and stay connected. "Our job is to make sure the rules support ongoing investment in world-class fibre networks and services that are critical to New Zealand's digital economy. "The core rules for fibre networks are working well. This review focuses on targeted improvements to simplify and streamline the framework, so it remains fit for purpose as the market evolves."

Investment test

The draft decision proposes a clearer investment test for large-scale fibre network expansion projects, setting out how major expansion plans would be assessed.

Gilbertson said the change would provide more certainty for investment decisions by the country's main fibre wholesaler.

"This change clarifies how major fibre expansion proposals will be assessed," he said.

"By setting out the framework upfront, we're reducing uncertainty and helping ensure Chorus can invest in expanding the fibre network where there's a sound commercial case and clear benefits for consumers."

Under the proposed approach, large expansion projects would be assessed using a cost-benefit framework, including analysis of how consumers value fibre services, such as willingness to pay.

Capital spending

The draft decision also addresses the capital expenditure proposal process, proposing clearer information requirements and adjustments to regulatory timelines.

The Commission said the changes are intended to make the framework simpler and more predictable for stakeholders. It also flagged refinements to the treatment of connection capital expenditure and insurance, along with other targeted amendments.

Over the past five years, the Commission has built out a regulatory framework for fibre services and introduced consumer protection and monitoring initiatives alongside price and quality regulation.

The Fibre Input Methodologies determine how key elements of the regime work in practice. They cover how regulated assets are valued, how prices and revenues are set, and how the cost of capital is calculated.

For network operators and service providers, these settings shape expected returns and influence long-term investment decisions, including upgrades and expansion. For end users, they affect the limits and incentives behind wholesale pricing and regulated service quality.

Two-stage review

The review is structured in two stages. The current draft decision focuses on issues linked to the next price-quality reset for fibre services, due to apply from 2029.

A second stage will consider additional issues, including fibre-specific cost of capital parameters. In parallel, the Commission is consulting on cost of capital input methodologies that apply across fibre and other regulated infrastructure sectors.

The Telecommunications Act requires the Commission to review the input methodologies at least every seven years. Final decisions on the current stage are expected in the third quarter of 2026.

Submissions on the draft decision close on 16 April 2026, with cross-submissions due by 6 May 2026.