Last month we released a trio of papers that will have caught the eye of our telco stakeholders. The most prominent of the three, in terms of public profile, was the preliminary findings of our mobile market study.
The timing of our mobile study release happened to follow hard on the heels of Infratil announcing its plan to purchase Vodafone. This situation gave the media extra reason to be interested in the state of competition in New Zealand’s mobile services market. Overall, our view that competition is trending in a positive direction for consumers was well-received.
We look forward to hearing from interested parties on our initial findings. Particularly around our views on the importance of spectrum to future competition and our current inclination not to intervene in the Mobile Virtual Network Operator market given the emergence of signs of competition in this space.
We would like to thank the industry for its co-operation in responding to our information requests on which we have built our analysis over the last 18 months.
We are also keen to hear from telco stakeholders on the rules we are developing to regulate fibre services. We heard that at least one analyst was surprised by our initial views on the cost of capital and asset beta, which is understandable given the complexity of these calculations. This paper is your opportunity to test our emerging thinking on different topics before we make our draft decisions. Submissions are due by 16 July.
We are also assessing what dimensions of quality matter to New Zealanders, and how they will flow through to standards we will require Chorus to meet. We are currently looking at quality based on the stages of the fibre service lifecycle, which include customer service, service availability and performance, among others.
One report that had a lower profile was our draft recommendation to deregulate Spark’s resale services. We consider that it is now the right time to remove these regulations. Our reasons were competition has been established, is increasingly effective, and is no longer dependent on access to these services. Submissions on our report have now closed and have been published on our website. Our final report, addressed to the Minister, will be published next month.