Telecommunications Inquiry  New Zealand Government Media Release
8 January 2001  The Government's response to the
telecommunications inquiry will mean better phone deals for many
homes and businesses in areas such as South Canterbury,
according to Aoraki MP and Rural Affairs Minister Jim Sutton.
Communications Minister Paul Swain announced the response just
before Christmas.  Telecom will retain ownership of the local
loop-  the wires from the exchange to the phones -  but it will
have to allow discounted access for other providers. This means
real competition in the New Zealand telecommunications market
for the first time since the industry was deregulated 10 years
ago.  As a direct result of that lack of real competition, it
has been estimated that subscribers have been overpaying for
their phones to the tune of $300 million to $400 million a year.
As part of the deal when Telecom was sold in 1990, it was not
allowed to put up the price by more than the rate of inflation,
but more importantly, it had to