TUANZ MEDIA RELEASE

TUANZ WELCOMES AND SUPPORTS KIWI SHARE REFORM

“Overdue, but nevertheless very welcome” is the reaction of the Telecommunications Users Association (TUANZ) to the Telecommunications Carriers Forum’s report on the Telecommunications Service Obligation (“Kiwi Share.)”

“The recommendations in the Report will be excellent for consumers,” TUANZ Chief Executive Ernie Newman said.

“The old Kiwi Share was devised at a time when Telecom was a monopoly service across most of New Zealand. It assumed that Telecom was the only practical supplier of services to more isolated areas, which is no longer the case.

“It has actually held back the emergence of competition by not only giving Telecom a position of privilege in rural areas, but requiring other service providers to make a substantial cash payment to Telecom to subsidise its losses in those areas. This is bizarre economics!

“The recommendations, if implemented, will remove a significant barrier to competition. In turn this will give other service providers a much better opportunity to compete in rural and provincial New Zealand, and open the way for smaller, regionally-based operators to enter the market.

“There are adequate safeguards in the recommendations to safeguard the interests of users, and we are comfortable that every New Zealander will continue to receive a satisfactory basic voice service.

“TUANZ congratulates the Telecommunications Carriers Forum and its members on reaching consensus on an issue that had the potential to be very divisive. We look forward to working with the government and the industry to bring this to fruition.”

ENDS

Further information from Ernie Newman               021 488 188        (after 9.30am)