Does the Telecommunications Carriers Forum (the industry body that creates self-regulatory codes) need its governance structure overhauled? Richard Rowley, the independent chair of the Numbering Administration Deed (NAD) believes it does.
“I’m in the camp with a lot of other members in the industry that think the TCF should change the way it governs itself,” he says.
Currently, the members on the TCF that pay the biggest fees get the biggest say. Telecom funds 40% of the TCF’s costs, Vodafone and TelstraClear pay 25% each of the TCF costs, and rest of the membership pays the remainder (which is not more than $5000 for non tier one telcos). As a result Telecom, Vodafone and TelstraClear each have a seat on the TCF Board, and there is a seat for a tier two representative and a seat for a tier two/three representative. TUANZ has a non-voting seat as the consumer representative.
In contrast, NAD members each pay a flat fee of $10,000 per annum each and get an equal say. The membership has increased in the five years that Rowley has been independent chair from seven to around 15 members. Only members of the NAD can allocate New Zealand numbers. But it’s possible to join the NAD, acquire blocks of numbers, and then leave without surrendering the right to those numbers – as TeamTalk has done.
“The role of the TCF and the NAD is to create a fair and equitable environment for everyone in the industry no matter how big or small they are,” says Rowley. “And I would have thought that the customers want that outcome. And all that’s happening, I see, is that Telecom, because they’re the biggest [and] have more customers, therefore they should pay more to achieve the right outcome, but it doesn’t mean that they’re the only ones that know what a good outcome looks like.”
Rowley understands the TCF is examining its governance structure; however TCF CEO David Stone was unable to comment on it when approached by TR.
“This is a matter that is internal to the TCF and in my view would be premature for me to make any comment at this time. Any views I may have are entirely preliminary and need to be debated within the TCF before being aired publicly,” Stone says.
The TCF has put forward a numbering code which suggests it take over number administration, and that any telco wanting numbers needs to sign up to membership of the TCF.
This proposal has been criticised by the Commerce Commission, InternetNZ and other industry players such as TeamTalk. Stone concedes they may have to go back to the drawing board: “The suggestion that TCF membership be a necessary precondition for future number allocation seemed like a good idea at the time. The reality is that if there is substantial opposition from the Commission (as there is), then that provision will be removed.”
Rowley says he would prefer the administration of the numbering plan remains with a self regulatory body, rather than be managed by a government agency, as it is in most other countries.
He says that greater regulation can increase costs which could then be passed onto the end user – as has occurred in the electricity sector.
“I think there’s a lot to be said for the industry to be kept honest and running themselves, and as long as you’ve got enough players in the industry that will work. When you’ve got two or three players it just becomes an oligarchy.”
Look out for the Telecommunications Review feature on the way NZ numbers are administered in the upcoming April Edition.
