ComCom looks to deregulate copper access and mobile termination services, but is understandably at an earlier stage with potentially evolving the country’s fibre regime
Regulator seeks input on proposed copper access deregulation in rural areas
On 12 March 2025, the Commerce Commission (ComCom) launched a four-week call for comments on its draft recommendation to remove access regulation from Chorus’ copper network in areas outside the national fibre footprint. Regulation has already been removed in urban areas where fibre and other more reliable and affordable technologies are available – and Tristan Gilbertson (Telecommunications Commissioner, ComCom) states that there is a case for removing it in rural areas too. According to Gilbertson, technological change has eroded the natural monopoly concerns that led to copper being regulated 20 years ago, with Starlink the latest example of that trend. ComCom now considers that there is a sufficient competitive constraint from alternatives to warrant deregulation, which would enable Chorus to start withdrawing some copper services that are still used by consumers. ComCom’s recommendation must be finalised for the Minister for Media and Communications by the end of 2025, who will then decide whether or not to take it forward.
The overall fibre regime is working well, although certain components of it are set to be reviewed
ComCom has also published an Open Letter initiating a programme of work looking at the evolution of New Zealand’s regulatory regime for fibre. Only introduced in 2022, the regime is seen as working well, although ComCom considers that it must keep pace with market developments in order to provide the certainty that will sustain ongoing network investments. The regulator will therefore start a targeted review of the underlying framework of rules for fibre services – called the Fibre Input Methodologies (IMs) – focused on three key issues: cost of capital; rules for new capital investments; and controls applied to Chorus. ComCom would then move to look at other aspects of the regime, including whether:
There is a case for rolling back regulation on certain services;
A revenue cap on Chorus remains the best way of allocating risk and producing effectively competitive outcomes;
There is a case for reviewing existing declared services or declaring an unbundled fibre service; and
There is a case for targeted changes to information disclosure requirements.
Following a final decision in December 2024, ComCom is in fact already poised to begin a deregulation review of four of the seven fibre services it currently regulates. However, this does not necessarily indicate that rules will be withdrawn, only that ComCom has accepted that there are grounds for considering doing so. For deregulation to take place, the regulator would need to be satisfied that there is sufficient competition to protect the long-term interests of consumers.
ComCom moves closer towards deregulating mobile call termination services
On 25 March 2025, following its draft decision from last November, ComCom also confirmed that it will investigate deregulating Mobile Termination Access Services (MTAS). Before MTAS was regulated in 2010, each mobile network operator had significantly cheaper prices for ‘on-net’ calls and SMS compared to those going ‘off-net’. According to ComCom, this hindered competition in creating a barrier to a new operator attracting customers to its network. There has since been a significant shift in the competitive landscape in New Zealand, including the growth of alternative messaging platforms and the move towards data services, which potentially negate the need for regulation. Although the previous review in 2020 determined that MTAS rules should remain in place, Gilbertson considers that a formal investigation is now warranted, but that a recommendation to deregulate will be made only if ComCom finds that regulation is no longer needed to promote competition for the benefit of consumers. Again, any recommendation will be made to the Minister, who will be responsible for deciding whether or not to proceed. Deregulation of mobile call termination would reflect a growing trend in Europe, where regulators in countries such as Belgium, Ireland and Spain have removed SMP designations and obligations in this market.
