Tanczos Nandor: Telecommunications Amendment Bill — First Reading 
Tanczos Nandor: Telecommunications Amendment Bill — First Reading 
[Volume:632;Page:4082] 
NANDOR TANCZOS (Green) 
: 
 I rise to speak on the Telecommunications Amendment Bill on behalf of the Green Party. I begin by congratulating the Minister David Cunliffe on making a courageous move and moving swiftly to implement the Government’s policy decisions by bringing the bill before the House. I commend the Minister because it is an issue that has been raising its head over a number of years. It has gone backwards and forwards; it has been before the House and in the public domain. The Minister has now grasped the nettle and done something about it and I commend him for that. 
 Mr Donnelly was a little bit unkind to imply that one would have had to have one’s head in the sand not to see this coming. I guess his implication was with regard to the position Telecom had taken. But I think it was a bit unkind because Telecom managed successfully to stave off these kinds of moves for a very long time and it clearly thought that it could continue to do so. As I said it is a credit to the Minister that some action is now being taken. 
The reality is that just about everyone has been calling for these kinds of moves except perhaps for the Business Roundtable and Federated Farmers. I have never quite understood the position of Federated Farmers who seem to have taken the position that Telecom’s maintaining of a monopoly over the copper wire would improve services in the rural community. Farmers have absolutely no reason to be satisfied with the service they have been provided with so far and there is a very good chance that this legislation in conjunction with some of the investment announcements the Government has already made may well mean a significantly better service in the rural community. So this is a thing that is being broadly supported it seems in the community. Up until now Telecom has seemed to be immune from regulation and this bill means those days are no longer with us. 
During the debate on the previous telecommunications legislation Sue Kedgley moved some amendments on behalf of the Greens to introduce local loop unbundling but they were not supported by the House. Those moves were in a sense ahead of their time. We saw other opportunities under the previous Minister of Communications Paul Swain to take some action and again unfortunately it did not happen. I am just saying these things—giving that historical context—to indicate really clearly that the Greens are totally supportive of this bill and of the policy behind it. We look forward to seeing it enacted by this House as soon as is practically possible with regard to good legislative decision-making. 
Mr Donnelly said this bill was not the total answer and he is right. It is part of a package announced by the Government that has a number of other components but it is to enact certain parts of those decisions that were announced at the time of the Budget. Really a key part of the Greens’ support for this bill is that we think it is a crucial part of making us a more sustainable economy and a more sustainable nation. If we are going to reduce our dependence on fossil fuels and make things like telecommuting and the like an actual reality in the day-to-day lives of ordinary New Zealanders then unlocking the potential of broadband in our telecommunications infrastructure is exactly what we need in order to do that. Those concerns were recognised by the Telecommunications Users Association when Ernie Newman commented on the logical support the Greens would give to local loop unbundling and those other measures because of the concerns about sustainability and reducing our dependence on fossil fuels. 
Because of New Zealand’s geography and remoteness it is crucial that we get serious about the telecommunications infrastructure. We have a creative and an innovative population that is very quick to take up new technologies. That has been demonstrated for a very long time. In fact when Pakeha came to these shores Maori were very quick to take up new technologies that were available. The Pakeha population—the people who have come here—is equally quick to take up new opportunities. We are an entrepreneurial nation. Unlocking the potential of the information technology infrastructure is crucial to unleashing the potential of New Zealanders. 
Like Mr Donnelly I was pleased to see the announcement that Telecom has made around voluntary moves to create a separate independent wholesale operator. That is really encouraging and we congratulate Telecom on those announcements. They were made subsequent to the assurances that Telecom and in particular Theresa Gattung have made that Telecom sees the writing on the wall and is not going to play an obstructive role but will embrace the new environment and move forward positively and cooperatively. So we are cautiously optimistic that this announcement is about putting those assurances into practice. Cautious is the operative word—there is no reason to be naive and we have to look at what is actually put in place in practice. As has been said by previous speakers the devil is in the detail. Nevertheless we are cautious but optimistic because here is an opportunity to see some really positive moves and not to have to wait for legislation to pass through the House. 
Telecom has the opportunity to take some independent positive steps forward. Of course the provision that allows the Commerce Commission to recognise formal undertakings and accept and enforce voluntary supply commitments and the like in lieu of regulation is in line with that position. So we support that. It has been a reality of moves to regulate telecommunications incumbents overseas that often the strategy of incumbents has been to stall obstruct and obfuscate. I and I think everyone in this House will be very pleased if that proves not to be the case in relation to Telecom in this country. 
In looking at some of the provisions the bill introduces we see that it is quite a complex and comprehensive bill. It addresses a number of different issues. It provides for the introduction of a standard terms determinations process that will allow the Commerce Commission to set access terms and conditions for regulated services for both multiple access seekers and access providers. The ability of the commission to set access terms and conditions is crucial. We have seen this in the international context in relation to local loop unbundling. It is an issue around the whole mobile phone industry in this country. As I mentioned the process allows the commission to enforce voluntary commitments in lieu of regulation and we support that. It allows those voluntary commitments to be made and negotiated in good faith. 
It empowers the commission in a number of ways. We think that that is good because one issue has been the ability of the commission to intervene and regulate and to actually have some teeth. The bill will start to put some of those measures in place. It is important there be a body that can intervene and look out for the strategic interests of New Zealand and New Zealanders and the introduction of local loop unbundling is at the heart of that issue. 
The bill also provides for backhaul and co-location of equipment. I will touch on that subject briefly because it is crucial and has been a big issue in respect of mobile phones. There is anecdotal evidence that Telecom’s network roll-out is installing roadside cabinets that are physically incapable of supporting co-location. I do not know whether that is true—it is just something I have been told although I have not checked it out for myself. If it is true it is a big issue and Telecom would need to be taken to task. Transparency is really needed in that area. 
The bill amends the unbundled bitstream service and provides for naked DSL. That is good particularly since the recent Commerce Commission decision in relation to Vodafone offering competition to the landline service through its mobile network. Again the provision of naked DSL is important. 
The bill is to be very much encouraged and the Minister is to be commended. The Green Party totally supports it.