Page 86 - SAMENA Trends - July-September 2024

REGULATORY & POLICY UPDATES SAMENA TRENDS

ComCom to Consider Deregulation of Fiber Services at a Later Stage

The Commerce Commission is seeking feedback on its draft of speed and performance and what wireless broadband can
decision that it is too early to investigate the deregulation of deliver – so they’re a potential game changer. However, for now,
fiber (UFB – Ultra Fast Broadband) services. “Our preliminary they’re still in the early stages of being rolled out and their potential
view, just three years into the new regime, is that there’s not hasn’t yet been demonstrated.” Submissions on the Commission’s
enough competitive constraint on fiber for there to be any serious draft decision are due by 5pm on 24 September 2024 and can be
question of deregulation at this time,” said Telecommunications made through the Commission’s infrastructure regulation mailbox.
Commissioner, Tristan Gilbertson. “Fiber providers occupy a near Cross-submissions on matters raised by other parties are due by
monopoly position in their markets, with the incentive and ability 5pm, on 15 October 2024. The final decision will be made by Q4
to act contrary to consumer interests, unless there’s enough 2024. New Zealand’s fiber networks were built by four regulated
competition from alternative technologies to hold them back.” Mr. fiber wholesalers — Chorus, Enable, Northpower, and Tuatahi — in
Gilbertson says that the predominant competing technology, 4G partnership with the Government under its Ultra-Fast Broadband
wireless broadband, does not exert sufficient competitive constraint (UFB) initiative. These networks are now regulated through a
on the significant market power of fiber providers. “4G wireless price-quality and information disclosure regime, introduced
broadband is limited in its ability to constrain fiber – particularly in 2022, following amendments to the Telecommunications
given the increasing gap between what Kiwi consumers want from Act (Act). Enable, Northpower, and Tuatahi are subject to
their broadband service and what 4G wireless broadband can information disclosure regulation only, while Chorus (as the
deliver.” Mr. Gilbertson said the Commission is concerned that, largest fiber provider) is also subject to price-quality regulation.
if regulation were removed prematurely, fiber providers would be The Commission is in the process of determining Chorus’ price-
able to increase prices or reduce quality – or both – to maximize quality path for the second regulatory period covering 2025-
profits at the expense of consumers. “It’s therefore in the best 2028. The fiber (UFB) regime is intended to incentivize regulated
interests of consumers that current regulation remains in place for fiber wholesalers to act in the best interests of consumers
now – so that Chorus continues to invest in providing world class and to promote competition in telecommunications markets.
services at reasonable prices. “Regulation is designed to promote Information disclosure requirements exist to ensure that sufficient
the long-term interest of consumers and outcomes consistent with information is available for people to assess whether this is being
an effectively competitive market – as seen in our final decision achieved. Price-quality regulation allows the Commission to set
last week on Chorus’ expenditure for the next four years. This will the maximum revenue Chorus can earn from its customers and
see Chorus invest $1.722 billion in its network over the next four the minimum quality standards it must meet. The Commission
years but protect consumers from $172.6 million of unjustified must consider whether there are reasonable grounds to start a
expenditure that would have flowed through to higher prices.” fiber fixed line access services deregulation review under s 210(3)
If confirmed in the final decision, regulation would continue to of the Act before each regulatory period. The current review must
apply to wholesale UFB fiber services, with deregulation next to therefore be complete by 1 January 2025, and the next by 1 January
be considered before 2029. “We’ll be keeping a close eye on the 2029. There are seven fiber fixed line access services subject to
development of 5G wireless broadband services going forward. regulation – including the principal service used to deliver fiber
They narrow the gap between what most consumers want in terms broadband services to Kiwi homes (Bitstream PON).

Findings on 5G Licensing Fees Among Arab Telecom Regulators

Arab Advisors Group released a new telecommunication report a benchmark for operators and regulators in countries that have
entitled “5G Licenses in MENA: Fees, Awarding Terms, and Obliga- yet to award 5G licenses, enriching those looking to make da-
tions”. The report presents the awarding status of 5G licenses ta-driven decisions. “The release of the 5G Licenses in MENA re-
across 19 Arab countries, as well as commercial launches of the port aligns with Arab Advisors Group’s ongoing commitment to
technology. Arab Advisors Group digs deeper into awarding terms, examining pressing issues in the telecom sector. Since 2017, Arab
fees, and obligations enforced by telecom regulators in the region. Advisors Group has been monitoring advancements made in the
5G is gaining prominence around the world, as the appetite for MENA 5G market; our analysts have produced reports overview-
ultra-fast, robust Internet continues to rise. 5G is a necessity for ing 5G preparatory measures, trials and tests, partnerships among
any country aiming to become more digitised. Telecom regulators telecom stakeholders, commercial launches and expansions, tel-
are vital digitization enablers, and hence are obliged to complete- cos’ 5G marketing and pricing strategies, to name a few. The 5G
ly fulfill their rolls, among which is spectrum licensing. Arab Advi- Licenses in MENA report aids telecom operators and regulators in
sors Group released a new report that overviews 5G licensing sta- assessing their 5G roadmaps by providing them with insights into
tus across 19 Arab countries and sheds light on 5G commercial the steps taken by pioneers in the region, enabling them to mirror
launches. In its report, Arab Advisors Group further analyzes 5G their success.” commented Hiba Rabadi, Arab Advisors Group’s
awarding fees, terms, and obligations imposed by Arab telecom Managing Director.
regulators. The report provides valuable insights that can serve as
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