Communications and Information Technology Minister David Cunliffe is delighted that the Commerce Commission’s market monitoring report has revealed real improvements in New Zealand’s telecommunication performance.

“I note that Telecommunications Commissioner Dr Ross Patterson has said signs of increasing competition are also matched with a fall in average retail prices over all sectors.”

“The report says 2007 was a year of great change for New Zealand’s telecommunications markets following the passing of the Telecommunications Act in 2006. It identifies that increasing competition has meant that average retail prices have fallen along with publicly listed prices.”

Mr Cunliffe is also pleased that the report notes that “the price of residential broadband in New Zealand compares favourably to that of other similar developed countries and that the Broadband market continues to grow strongly and by September last year had surpassed dial-up as the most common means of internet connection.”

The report also notes progress on enabling a third mobile carrier to enter the market promising more competition and further price reductions”.

Mr Cunliffe said that New Zealanders will see this as extremely good news and notes that Dr Patterson has said “the rollout of the unbundled local loop will mean that improvements in competition will accelerate with flow on benefits to consumers.”
“The Report shows that the 2006 telecommunications reforms are already having a positive effect on telecommunications markets and we are likely to see further gains in 2008 with the implementation of local loop unbundling, enhanced bitstream access, and the entry of a third mobile network operator.”

The full report is available at www.comcom.govt.nz