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Broadband regulation and government investment in nationwide ultra fast fribre broadband networks: Evidence from New Zealand

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  • Howell, Bronwyn

Abstract

New Zealand stands apart from its OECD counterparts as one of the few countries pursuing government investment in a nationwide fibre network. As in the past, when it stood apart with its 'light-handed' regulatory approach, New Zealand's experience can inform other jurisdictions. This paper contributes by documenting and analysing the chronological history of the key political, regulatory and industry actions taken to implement the government fibre investment policy, between 2008 and September 2013. The chronology reveals an industry currently in considerable disarray. A critical political economy and industrial organisation-based analysis proposes that the incremental and pathdependent nature of the evolution of New Zealand's industry-specific regulatory environment resulted in a set of arrangements ill-suited to oversee the transition from a copper-based to a fibrebased fixed line access infrastructure. It contends that the current disarray was an inevitable outcome of a lack of co-ordinated oversight of sector policy and governance that allowed the fibre network investment to proceed without clearly-articulated overarching and forward-looking competition and regulation policies integrating legacy regulations and investments into the fundamentally different environment created by the government's revolutionary fibre policy. The result was the fragmentation of regulatory responsibility across many parties on the basis of network technology type. Consequently, each pursued its own objectives in isolation from the others, which led to a crisis in December 2012 when a regulatory decision about copper prices threatened the viability of the fibre project. Absence of clear and co-ordinated leadership of sector strategy in response to the crisis has resulted in the government's integrity being undermined and a loss of confidence amongst private sector investors.

Suggested Citation

  • Howell, Bronwyn, 2013. "Broadband regulation and government investment in nationwide ultra fast fribre broadband networks: Evidence from New Zealand," 24th European Regional ITS Conference, Florence 2013 88469, International Telecommunications Society (ITS).
  • Handle: RePEc:zbw:itse13:88469
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    1. repec:vuw:vuwscr:19314 is not listed on IDEAS
    2. Howell, Bronwyn, 2014. "Structural Separation and Technological Diffusion," Working Paper Series 4353, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    3. Howell, Bronwyn, 2014. "Separation anxieties: Structural separation and technological diffusion in nascent fibre networks," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106840, International Telecommunications Society (ITS).
    4. Howell, Bronwyn, 2014. "Structural Separation and Technological Diffusion," Working Paper Series 19314, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    5. Howell, Bronwyn & Sadowski, Bert, 2014. "Anatomy of a Public-Private Partnership: Hold-up and regulatory risk in an NGN PPP," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106872, International Telecommunications Society (ITS).

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