PROJECTS

Broadband Network Access Regulation, New Zealand

The problem

Telecom New Zealand was worried that proposed regulation of the national fibre network would create market distortions that might undermine cost recovery and network investment.

The regulation would mandate network access for broadband internet providers at two different layers of network architecture, creating risk of inefficient price arbitrage between the two layers. This could distort competition and created perverse incentives for investment.

How we helped

Castalia helped Telecom prepare its position on access regulation. We documented the regulation of fibre networks globally and found that regulation mandating access at multiple layers in the service stack was less frequent than single-layer access regulation. We showed that mandating access at a single layer addressed the main economic bottleneck without running the risk of distorting competition. It also supported investment in expanding the fiber broadband network.

Impact

Castalia’s advice enabled Telecom to prepare well-informed submissions to the government showing that regulating access at a single layer would achieve competitive outcomes with less market distortions. Despite this, multi-layer access was regulated.

The client

Spark (the client, Telecom New Zealand, merged with this company)

Our team

Alex Sundakov

Alex Sundakov

Executive Director

Find out more

How can we help you?

How can we help you?

WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia

AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (0)1 84 60 02 00
64-66 Rue des Archives
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia

Thinking for a better world.

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WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia

AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia

Thinking for a better world.

Castalia-logo-negative-2col
PROJECTS        NEWS        BLOG        CONTACT
© Copyright 2019 Castalia. All rights reserved.
Terms | Privacy | Credits | Sitemap