In 2019 we completed our investigation into whether Spark’s three resale voice services (Resale Services) should be deregulated.
In July 2019 we completed our investigation into whether Spark’s three resale voice services (Resale Services) should be deregulated. In September 2019 the Honourable Kris Faafoi, Minister of Broadcasting, Communications and Digital Media accepted our recommendation to omit Resale Services from Schedule 1 of the Telecommunications Act 2001.
The next step in this process is for an Order in Council to be proposed to the Governor-General by the Minister under section 66 of the Act, which would make the resulting change to Schedule 1.
Our investigation began in July 2016. In December 2016 the Minister accepted our recommendation to defer the decision for two years. The two years passed and we re-examined whether the services should be deregulated. Our final report and recommendation to the Minister and the Minister’s decision can be found below.
About Resale Services
Spark’s Resale Services enables other retail service providers (RSPs) to rebrand and on-sell fixed‑line phone services based on Spark switches, avoiding the need to deploy their own infrastructure. RSPs currently purchase Spark’s wholesale voice services through commercial agreements, but the inclusion of the services in Schedule 1 of the Telecommunications Act 2001 (the Act) provides a regulatory backstop.
Schedule 1 of the Act contains regulated wholesale services. The three wholesale services that were the subject of this review are used by RSPs to supply the most common retail telecommunications services to consumers. As markets evolve, new retail services are developed and wholesale service providers can face increased competition. These changes may mean it is no longer necessary to retain Resale Services, which currently acts as backstop regulation, in schedule 1 of the Act.
The following Resale Services were subject to our review and recommendation:
local access and calling services offered by means of fixed telecommunications network
retail services offered by means of a fixed telecommunications network
retail services offered by means of a fixed telecommunications network as part of a bundle.
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