The Commerce Commission has released an Open Letter to kick off a program aimed at evolving the regulatory regime for fibre broadband services in New Zealand. Telecommunications Commissioner Tristan Gilbertson emphasized the importance of maintaining a regulatory framework that supports ongoing investment in high-quality fibre infrastructure.

The review will focus on the Fibre Input Methodologies (IMs), which are relatively new, and will address three main issues: the cost of capital, rules for new capital investments, and the controls applied to Chorus, the largest fibre provider. The Commission also aims to streamline current rules and processes across the IMs.

In addition to the targeted review of the cost of capital, the Commission plans to explore other aspects of the fibre regime, including the potential for deregulation of certain services, the appropriateness of the revenue cap on Chorus, and the need for changes to information disclosure requirements. This comprehensive review is crucial for ensuring that the regulatory framework remains effective in promoting competition and protecting consumer interests.

The Commission is inviting public feedback on its Open Letter by April 29, 2025, and will seek views on other regulatory aspects as the work program progresses. The regulatory framework for New Zealand's fibre networks was established under the Telecommunications Act, recognizing the natural monopoly characteristics of the infrastructure and aiming to balance consumer interests with the need for provider investment.