Don’t stop limiting our competitors ability to compete say rivals

That is what the title to this article is suggesting right?

My impression is that Telecoms rivals want two things to continue happening:

  1. Telecom to be ineligible for broadband subsidies that they are getting from government,
  2. Telecom to be regulated in a way that:  Reduces Telecom’s ability to increase downstream costs.  Likely increases Telecom’s marginal costs in retail markets.

As a result, is this really surprising?  By increasing the relative marginal costs of a competitor, you can improve your own profitability in the end.  I wouldn’t really trust Telecom’s competitors as an objective analyst of how telecommunication policy should take place in NZ 😉

  • I’m sure the Minister just uses the submissions from those with a stake in the process to infer their incentives and glean information that he can use to regulate them more efficiently. There’s no way he would be naive enough to take their recommendations at face value, is there?