Telecom broadband regulation terms to stay

The Commerce Commission has released its review of competition in the Unbundled Bitstream Access (UBA) wholesale broadband market, saying Telecom continues to face limited competition and thus will remain subject to regulation terms.

Under the Standard Terms Determination (STD), Telecom is required to provide other telcos with access to its UBA service on request. The Commerce Commission could have removed the regulation if it found Telecom faced effective competition.

Ross Patterson, Telecommunications Commissioner, says this is not the case.

"In the wholesale market, there is no effective competition for the more than 50% of end user lines served from cabinets,” Patterson says.

"Competition in the retail market is limited because access seekers cannot provide voice services over cabinetised lines using their own exchange-based equipment in conjunction with UBA from Telecom.

"In our review, we concluded that the unavailability of this service has resulted in limited competition in the broadband access market.”

Go here to download the Commission’s full decision.