Matt Brown: Local Loop Unbundling
Wow!
It’s out. The government has finally gained the courage to force Telecom to unbundle the local loop. Possibly the most interesting part of the whole announcement is the circumstances of it. Cabinet signed off on it this morning, by midday it had been leaked to Telecom and the Government was forced to scramble to announce it to everyone to avoid regulatory problems from the Sharemarket. No doubt whoever leaked it is feeling very very worried about their job security right now! The Cabinet briefing paper and minutes that accompanied the original press release are a bad quality scan and have obviously been prepared very quickly with hand written corrections to the page
numbers in the latter half of the document. The document has now been removed from the website, which I guess means that it is being touched up. Email me if you want a copy. [Update 1am: It’s now back, but has had information redacted presumably because it is meant to be commercially sensitive!] If you want the hard facts the following are good sources: So, is this a good a thing? I think it is in the long term, but the best part of today’s announcement is what goes alongside the LLU decision, not the LLU itself. More on that in a minute. The Cabinet paper (60 pages) appears to be a very thorough summary of the detailed analysis that has obviously been performed over the previous months. What I think is a fairly reasonable argument is made for why the action is needed and why the chosen course of action is the best option. I’m very impressed with David Cunliffe’s handling of the portfolio and I hope that he continues to work to the high standard that he’s set himself in the few short months since the election. He’s certainly going to face some opposition now! One thing to keep in mind in reading the paper and analysing the information available is that the Government’s hand was forced and there is probably a lot of implementation detail that they would have planned to release with the offical announcement on the 18th. So theres not much point in nit-picking details at this stage. The meat of the announcement is that the Government has chosen a two-stage approach to increase the regulation in the sector. The two stages are basically short and long term actions designed to be complementary. The long term action is the LLU itself and promotion of investment in alternative infrastructure. Because this will not be completed and ready to use in any shape or form until 2008 at the earliest there are also a series of measures to beef up the current wholesale offerings to tide us over and improve the market in the interim. What we get in the short-term:
numbers in the latter half of the document. The document has now been removed from the website, which I guess means that it is being touched up. Email me if you want a copy. [Update 1am: It’s now back, but has had information redacted presumably because it is meant to be commercially sensitive!] If you want the hard facts the following are good sources: So, is this a good a thing? I think it is in the long term, but the best part of today’s announcement is what goes alongside the LLU decision, not the LLU itself. More on that in a minute. The Cabinet paper (60 pages) appears to be a very thorough summary of the detailed analysis that has obviously been performed over the previous months. What I think is a fairly reasonable argument is made for why the action is needed and why the chosen course of action is the best option. I’m very impressed with David Cunliffe’s handling of the portfolio and I hope that he continues to work to the high standard that he’s set himself in the few short months since the election. He’s certainly going to face some opposition now! One thing to keep in mind in reading the paper and analysing the information available is that the Government’s hand was forced and there is probably a lot of implementation detail that they would have planned to release with the offical announcement on the 18th. So theres not much point in nit-picking details at this stage. The meat of the announcement is that the Government has chosen a two-stage approach to increase the regulation in the sector. The two stages are basically short and long term actions designed to be complementary. The long term action is the LLU itself and promotion of investment in alternative infrastructure. Because this will not be completed and ready to use in any shape or form until 2008 at the earliest there are also a series of measures to beef up the current wholesale offerings to tide us over and improve the market in the interim. What we get in the short-term:
- UBS without the 512k upstream limitation
- UBS that can support real-time services (VoIP, Games, etc)
- Naked DSL - no Telecom phone service required