TSO - Local Service
In 2007 the Government issued a discussion document on the Local Service Telecommunications Service Obligations (TSO). The existing TSO agreement between the Crown and Telecom requires that Telecom delivers basic residential telecommunications services under a specific set of conditions. This includes free local calling for residential customers. The telecommunications industry funds the cost for Telecom to provide this service to commercially non-viable customers.
The TCF made a submission to the Government on this Discussion Document:
- noting that the Discussion Document sets out both economic objectives for telecommunications, including competition and innovation, as well as a social objective to provide for the widespread availability of telecommunications services at an affordable price;
- stating that the objectives of the current Local Service TSO can be met in a more efficient way that minimises the impact on competition and investment; and
- recommending that the TCF work with the Ministry of Economic Development (MED) and the Commerce Commission on a workable industry way forward for the delivery of Local Services that minimises any impact on competition and innovation.
TCF TSO Report
The Government gave their support to this TCF working party being established and the industry has subsequently been developing possible alternative solutions. A draft Report was prepared and issued for public consulation in March 2008. The working party has now completed its final Report and submitted its recommendations to government.
The TCF recognises the importance of keeping people connected and supports the objectives of the current TSO – to ensure the widespread coverage of an affordable residential telephone service for all New Zealanders. However, there is a strong case for the existing TSO arrangements to be reformed given the very significant changes in technology and the competitive environment that have occurred since the TSO was first established.
The report proposes a technology neutral standard and changes to the TSO supply and funding arrangements. It also proposes that the basic service be redefined, so that it guarantees similar functionality, but enables the service to be delivered across multiple technologies including copper, cellular, cable, wireless and satellite.
The following submissions were received in response to the TCF's Draft Report on the Local Service TSO:
TSO Working Party
The members of the working party who prepared the Draft Report are:
- BayCity Communications
- Korida
- TelstraClear
- Telecom
- Vodafone
- Commerce Commission (observers)
- Ministry of Economic Development (observers)
TSO Deed
|