Ultra-Fast broadband compromised by legislated monopoly

The legislation set up to roll out ultra-fast broadband throughout New Zealand is likely to deliver broadband that is unaffordable for most people, the Green Party said today

The Telecommunications (TSO, Broadband, and Other Matters) Amendment Bill has been reported back from Select Committee today with few significant changes. The Green Party filed a minority report and will now be voting against the continuation of the legislation.

“The Green Party will now be opposing the ultra-fast broadband legislation. It will deliver broadband that is neither fast nor affordable,” said Green Party Information and Communications Technology spokesperson, Gareth Hughes.

“The legislation will strip the telecommunications industry of competition, limit important regulatory oversight, which will ultimately result in a more expensive broadband service.

“Better broadband is essential for New Zealand’s economic prosperity and the Green Party supports the original objective of the legislation to increase broadband coverage and services available in both urban and rural environments.

“However the Government’s current plans for the roll-out will create an unregulated monopoly in the industry.

“Unregulated monopolies, especially in critical industries like telecommunications, undermine the overall competitiveness of the New Zealand economy. We saw this with the railways until the inevitable buyback by the Government.

An impressive number of telecommunication companies and industry watchdogs have joined together to oppose the Government’s Ultra-Fast Broadband initiative because of its negative impacts on competition and investment.

“The industry took an unprecedented step to come together and demonstrate their concern. Unfortunately, the National Government is not listening and the problem will likely have to be sorted out by a subsequent Government at great cost to the taxpayer and the economy,” Mr Hughes said.