Aligned with this, the Commerce Commission has recommended to Goldsmith that the rural copper network be deregulated.
If this is accepted by the minister, Chorus, the telecommunications infrastructure company that owns the copper network, will be able to begin withdrawing copper infrastructure in rural areas.
Telecommunications commissioner Tristan Gilbertson said technology had transformed rural connectivity over the past two decades, and copper regulation was no longer necessary to promote competition.
“Rural consumers continue to move off copper and onto cheaper and better-performing alternatives in large numbers,” Gilbertson said.
“We consider there’s now enough competition in the market to warrant removing copper access regulation.”
Under the Telecommunications Act, the Commerce Commission must consider whether copper regulation is still needed to promote competition.
Having received the commission’s recommendation, the decision to remove copper regulation now sits with Goldsmith.
Declining use
Gilbertson said less than a third of rural consumers now use copper, and that number continued to decline as consumers moved to better-performing alternatives.
“Most rural consumers can now access three alternative technologies that are often more affordable, better performing and more reliable than copper.”
Oliver said Rural Women New Zealand estimated about 80,000 rural consumers are still on the copper network across the country.
She said ensuring their concerns were heard was a key aspect of Rural Women’s submission to the telecommunications sector review.
“Connectivity is essential for rural New Zealand and access to reliable, affordable telecommunications underpins so many of our rural businesses, communities and essential services,” she said.
“While we understand the need to update regulation to reflect new technologies, we must ensure that the needs of rural communities are protected.
“Any changes to the Telecommunications Service Obligation and the treatment of copper networks must not leave rural customers behind.”
Rural Women New Zealand is calling for a binding code enforced by the Commerce Commission to protect consumers where alternative connectivity options are limited and to not deepen the divide between urban and rural areas.
“It’s about making sure rural customers, that still rely on copper connections, are not left behind,” Oliver said.
She said phasing out 3G networks in favour of 4G or 5G could also create more “black spots” in rural areas.
“Those in rural and remote areas are at real risk.”
Oliver said, along with mobile phone and internet services, this also related to security and medical alarms.
Farmers increasingly rely on telecommunications technology in their everyday activities, including animal identification and monitoring, plus associated aspects, including water supply and pasture growth.
Central hub
Members needed support transitioning to alternative services, with a central hub for information and advice, Oliver said.
Rural Women New Zealand recommended that members checked their devices and talk to service providers “sooner rather than later”.
Oliver said that while there were alternatives to the copper network, it was not always straightforward.
Wireless devices need to be “in eyesight” of a cell phone tower, while a satellite service could be more costly and involve greater technical support.
“Rural customers need an affordable and reliable service,” she said.
“Members must have support transitioning to alternatives, and we have to have consistent service standards.
“While we understand the need to update regulation to reflect new technologies, we must ensure that the needs of rural communities are protected.”
Chorus said the Commerce Commission’s recommendation to deregulate the copper network reflected that there were now better alternatives.
“This recommendation acknowledges that copper is no longer essential for competition and is nearing the end of its useful life,” general counsel Kristel McMeekin said.
“It provides clarity for consumers and industry and sets a clear path forward for copper retirement.”
McMeekin said copper connections had declined nearly 95%, and the network had been surpassed by a range of alternative technologies that delivered more reliable and higher-performing connectivity.
“The market has changed, and this recommendation reflects that.”
McMeekin said Chorus acknowledged the importance of copper to those who still use it and was working closely with the Commerce Commission, Government and retail service providers to ensure a clear and transparent process for copper retirement was in place as soon as possible.
“We are committed to ensuring a smooth transition to better, more reliable and fit for future technologies.”