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Home / Business / Companies / Telecommunications

<i>John Drinnan:</i> National keeps telco cards close to its chest

John Drinnan
By John Drinnan
Columnist·NZ Herald·
26 Mar, 2008 04:00 PM3 mins to read

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John Drinnan
Opinion by John Drinnan
John Drinnan is the Media writer for the New Zealand Herald.
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KEY POINTS:

John Key has had a central role in developing National's hush-hush new communications policy, caucus sources say.

But a big question in the industry is not so much about policy as whether a National-led government would have Maurice Williamson as Tele-communications Minister.

Leaving the announcement of details until
nearer the election is standard as political parties seek to ensure rivals don't steal their policies.

But it is confusing for the industry, which is dealing with big upheavals as a result of local-line unbundling and the split of Telecom.

The Government is expected to consider this week Telecom's financial submissions on its commitment to divide the company into three divisions for wholesale, retail and networks.

Industry bodies like TUANZ recently pleaded with politicians to maintain the momentum for change and better broadband services.

Telecom is still a dominant player would like the regulatory controls to end now.

Telecom supporters argue that New Zealand needs a strong local telco.

Other parts of the industry are trying to ensure that reforms do not end with the unbundling of the local loop.

They say improvements to broadband services need to be entrenched with growth of fibre-optic cable services over the next two parliamentary terms to 2014.

National is refusing to even hint at changes, though it is expected to oppose trends for local bodies to spend public money on local services.

But will Key reappoint National's communications pointsman for nearly two decades - Maurice Williamson - to the portfolio he held from 1990 to 1996?

Williamson says he would be happy to take on the communications job - or any other post that Key gave him in a future National-led government.

The Business Herald understands that Key is planning to merge the communications and broadcasting portfolios.

Williamson has headed a joint portfolio in the past and has been one of the few people in the National caucus to have a strong interest in technology.

He would appear an obvious choice.

Many in the industry would prefer Bill English but the portfolio would be too junior for him.

MPs Phil Heatley and Tony Ryall have been suggested as potential candidates for the post under a National-led government.

Some believe that Williamson will easily slot back into the old role and bring some continuity.

But among advocates of ongoing regulation and critics of Telecom's continued market dominance, Williamson would be an unpopular choice.

He was seen as too closely aligned with Telecom.

While nobody expects Williamson would or could overturn the current shake-up of Telecom dominance, he remains philosophically opposed to regulation.

Williamson and National worked with Labour on the Telecom-munications Act that forced the split of Telecom into three divisions and the unbundling of the local loop.

He acknowledges the allegation among some in the industry that he was close to Telecom and says it is not true.

"I certainly don't think I was too close to Telecom."

Unwillingness to regulate in the 1990s is blamed for maintaining Telecom's ability to maintain anti-competitive practices and slow the development of broadband.

"That was one of the arguments that they raised," Williamson said.

"Every time I looked at a regulatory issue at the time, I could not see there were any gains being made.

"It is really pointless trying to debate the policies of last century."

Rather than blaming National, he said reporters should focus on Labour's unwillingness to set restrictions for the sale of Telecom.

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