NZ Opens Public Consultation on Major Telecommunications Regulatory Review

The New Zealand Government has officially opened public consultation on proposed changes to the country’s telecommunications regulatory framework, inviting Kiwis to provide feedback on reforms that could reshape how essential communication services are delivered, priced, and governed.

The announcement was made jointly by Minister for Regulation David Seymour and Media and Communications Minister Paul Goldsmith, who emphasized that the voice of the public is central to the review process. Both ministers highlighted that telecommunications services, like electricity and water, are now fundamental to everyday life, and that changes to regulation will impact almost every New Zealander.

Why the Review Matters

Telecommunications contribute around 2.5 percent of New Zealand’s GDP, making it a critical sector for both economic growth and social wellbeing. As digital connectivity increasingly underpins business, education, and social interaction, the regulatory framework must evolve to keep pace with technological and economic shifts.

Minister Seymour underlined the broader economic implications of regulatory design:

“In a high-cost economy like ours, regulation isn’t neutral—it’s a tax on growth. That’s why it’s critical we remove unnecessary red tape that stifles industry expansion and investment.”

The government’s goal is to ensure that rules encourage innovation and private investment while still safeguarding consumer interests and maintaining affordable access for rural and remote communities.

Key Issues Under Review

The consultation covers several major aspects of telecommunications law and policy, many of which were flagged as outdated or overly complex by industry stakeholders. These include:

• Shareholder Cap and Constitutional Restrictions: Examining whether current rules around ownership structures and caps remain relevant.

• Telecommunications Service Obligations (TSO): Reviewing requirements that ensure rural and remote communities have access to affordable telecommunications services.

• Telecommunications Development Levy (TDL): Evaluating how the levy is allocated among providers and whether the system is unnecessarily burdensome and costly to administer.

• Retail Service Quality (RSQ): Reviewing Part 7 of the Act to strengthen service standards and consumer protection.

• Fibre Fixed Line Access (FFLA) Services: Considering updates to Part 6 of the Act, which governs fibre access services.

• Fibre Service Regulations: Looking at whether Part 4AA of the Act still serves consumer and industry needs.

Draft Proposals on the Table

The government’s draft proposals aim to modernize regulations while reducing inefficiencies. Among the suggested reforms are:

• A Binding Consumer Code: To be enforced by the Commerce Commission, this would provide stronger consumer protections, particularly around service quality and complaint resolution.

• Replacing the TSO Framework: Updating or phasing out the existing TSO so that infrastructure obligations reflect current broadband and connectivity realities rather than outdated copper networks.

• Phasing Out Legacy Rules: Removing obsolete copper network management rules as fibre becomes the dominant infrastructure.

• Boosting Investment Appeal: Reducing barriers for telecom companies to attract capital and expand their networks.

Minister Goldsmith stressed that public voices are crucial in shaping these outcomes:

“The review is focused on regulatory issues raised by the sector, but it now needs the views of Kiwis. We must ensure that rural communities continue to have affordable, reliable services while also future-proofing our infrastructure.”

Next Steps

The consultation period is now open and will run until Thursday, 25 September 2025. Kiwis are encouraged to share their views online through the official consultation platform. The government will then consider submissions before preparing the final review report, which will guide ministerial decisions on regulatory reform.

Minister Goldsmith concluded:

“We all rely on high-quality and affordable connectivity for work, social connection, and access to digital services. This review is about ensuring New Zealand’s telecommunications sector is fit for the future.”

How to Participate

• Consultation Portal: Submit your views here

• Background Information: Read the full Terms of Reference

The government encourages wide participation to ensure the regulatory framework reflects both industry realities and public needs.