Telecom NZ (ASX:TEL) has welcomed a New Zealand regulator's decision to remove some of its pricing obligations for wholesale services.
New Zealand's Commerce Commission (ComCom) has decided to release Telecom NZ of its regulatory requirements to resell broadband and data services at a set price.
ComCom said it had made its decision based on the low take-up of such services and the availability of alternative access options.
The old regulation, introduced in 2001, will still apply to areas where there is significant take-up of resale services, or where there is a lack of effective competition.
Telecom NZ group general counsel Tristan Gilbertson said many of the requirements had been superseded by more detailed regulation and technology advances, including local loop unbundling.
“With this decision, the Commission has recognised the importance of rolling back early interventions in the market, in light of subsequent developments and rapidly increasing competition,” he said.
“This decision sends an important deregulatory signal to the market at a time when significant investment will be required to deliver next-generation fibre access networks,” he added, referring to the government's Ultrafast Broadband Project and related Rural Broadband Initiative.
Under the 2001 regulation, ComCom only steps in when access seekers are unable to come to commercial terms with Telecom NZ on their own.
TEL shares grew 2.16% to $1.655 in Friday's trading following the announcement.
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