The Commission aims to ensure customers are given adequate notice ahead of the switch-off of copper, and move to equivalent services.
Background: In New Zealand, the transition towards full fibre broadband is gathering pace, with the Government expecting fibre to be available to most homes by 2022. This means that large parts of the traditional copper phone and broadband network may no longer be needed, and the incumbent operator Chorus will gradually withdraw copper-based services including landlines and DSL broadband.
A code to regulate the withdrawal: On 20 May 2020, the Commerce Commission released a draft code with the rules Chorus will have to follow for the withdrawal process. The code sets out minimum requirements Chorus must meet before it will be able to stop providing copper services, including that equivalent services must be provided over fibre. Consumers who are still using copper services will get at least 6 months’ notice, be provided with information about moving to fibre, and – if they order it – have fibre installed at their home before the copper services can be stopped. Chorus will not be able to stop supplying copper services until the code is finalised. It will only be able to do so in the areas where fibre is available to be installed in homes, and once the consumer protections of the code are met. The fibre connection must, at a minimum, provide voice and broadband; if an anchor service is ‘declared’ (i.e. regulated ex-ante), it must also be available. In areas where fibre is not currently available Chorus must continue to supply services over the copper network.
Next steps: The Commission is seeking feedback on the Code by 17 July 2020, and expects to finalise it by September 2020. The Commission is also consulting on a code to make sure vulnerable consumers have an appropriate means of contacting 111 (the emergency services) in the event of a power cut.
