International Journal of Communications Law & Policy

LIGHT-HANDED REGULATION OF TELECOMMUNICATIONS IN NEW ZEALAND: IS GENERIC COMPETITION LAW SUFFICIENT?

By Malcolm Webb and Martyn Taylor

Download the Paper in PDF Format: IJCLP Web-Doc 7-2-1999

Abstract

New Zealand’s approach to the regulation of telecommunications differs from most other nations and is colloquially known as "light-handed" regulation. New Zealand’s approach has attracted considerable international attention in recent years and has been described as "unique", "bold" and even "radical by world standards".

This paper outlines the key elements of New Zealand’s light-handed regulatory framework for telecommunications and then critiques this framework in the context of telecommunications interconnection.
This paper suggests that the effectiveness of light-handed regulation is critically reliant upon the effectiveness of the underlying competition law. However, there are serious concerns regarding the ability of New Zealand’s generic competition law to adequately address telecommunications-specific issues.

This paper concludes by noting that the New Zealand Government should consider enacting an essential facilities regime or minimalist industry-specific legislation for telecommunications as it is now doing for New Zealand’s electricity sector.

While the issues raised by this paper are to some extent a function of New Zealand’s market structure, New Zealand’s regulatory experience does provide insights for other nations. These insights will be particularly useful for nations that must regulate a dominant telecommunications service provider that controls essential network infrastructure.