3.1.2 Competition

2degrees submits that the light-handed and self-regulatory approach to regulation in New Zealand is internationally regarded as a disaster, and that there is enough evidence to support a departure from the current regime, including:

• Interference problems;

• Lack of competition in mobile market and closed networks².

2degrees contends that synchronisation with competition law needs to become the theme for spectrum management in New Zealand and that a major problem is gaining access to closed networks.

These comments go well beyond the scope of the current review, but do address some of the competitive issues that can arise if spectrum is converted to management rights while a market is still developing. These comments have informed the analysis below on the option to convert spectrum under the RLR to management rights. Both the Ministry and the Commerce Commission continue to work on a number of policy inputs affecting the mobile business, with the aim of improving competition and service outcomes for consumers.

Footnote

² The Ministry understands that this refers to an incumbent operator effectively limiting competitive access to an existing network service.