UFBI 2.0: Revised separation boundaries may partially address pricing and uptake limitations in New Zealand fibre broadband model, but significant competition policy problems remain

David Heatley and Bronwyn Howell

No 19290, Working Paper Series from Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation

Abstract: On July 1 2010, the Minister of Communications Steven Joyce announced fundamental changes to the structure and regulation of the New Zealand Government's Ultra-Fast Broadband Initiative. The changes were deemed necessary in order to achieve uptake targets sufficient to underpin the business case for both government and private sector investment. Whilst the changes would appear to enable progress towards the ability to access productive scale efficiencies and competitive pricing structures that will induce some degree of substitution, lack of clarity about the future competitive environment still exposes investors in the sector to significant uncertainties and potential perverse outcomes. Consequently, overall sector investment will likely be inhibited, and the evolution of broadband sector institutions substantially constrained.

Keywords: Ultra-fast broadband; competition policy; vertical separation; fibre to the home; price discrimination (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:vuw:vuwcsr:19290

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