Government broadband law should not be for sale

Telecom’s final offer to claim the bulk of the Government’s $1.35 billion to build our ultrafast broadband network represents an attempt to buy something which shouldn’t be for sale, saysLabour’s Communications and ITspokesperson Clare Curran

“Telecom’s announcement yesterday that it has provided the Government with a binding offer on UFB and that it will reorganise its business is itslatest move to game play its way into securing taxpayer money and enormous regulatory concessions,” Clare Curran said

“Today’s court decision to penalise Telecom for anti-competitive conduct dating back to 2001 triggers warning bells about entrenching monopolistic practice and is further evidence of Telecom’sgame playing and using the system to its own advantage.

“The Government’s announcement yesterday via the media that it is making a so-called concession to its legislation is minor tweaking which won’t come into effect until 2019.

“In the meantime, the winning bidder will enjoy almost 10 years free from regulation on price and a range of other matters which provide real risks to the rest of the telecommunications and emerging fibre industry.

“The Government should be careful that it too is not perceived as game playing with taxpayer money. New Zealand’s new fibre network should not and must not be about suiting our incumbent telco and forcingprices to be higher than they otherwise may be.

“Taxpayer money should not be used to provide extraordinary regulatory concessions to one player in the market . Our laws and strategic infrastructureshould never be for sale,”Clare Curran said.

“The Government’s broadband scheme is deeply flawed. Minister Stephen Joyceknows it and so does the industry.”