How we helped
Castalia examined the likely effects of uncoordinated and poorly designed regulatory approaches to fiber and copper networks. We argued that regulating the two networks separately was not consistent either with efficient facilities-based competition between the two or with efficient managed transition from copper to fiber. If the government wanted to allow fiber and copper to compete, it should not regulate either network and allow prices to be set through competition. If the government wanted to promote managed replacement of copper with fiber, the most efficient approach would be to set maximum allowable revenue for a combined copper-fiber broadband network as a single natural monopoly, based on a reasonably efficient level of investment, while allowing the network operator to set charges for specific services to send efficient signals to consumers. We assisted Chorus with preparing submissions to the New Zealand Government.