Commission confirms updates to fibre rules to support future investment

These changes will ensure that fibre networks can continue to grow and deliver reliable, high-quality broadband services for consumers.

Telecommunications Commissioner Tristan Gilbertson said the changes will strengthen the framework as demand for fibre continues to increase.

“It's important the regulatory framework evolves as demand for fibre grows. These changes strike the right balance between supporting investment and protecting the long-term interests of consumers,” he said.

“A key change is a new investment test for major fibre expansion projects. The test will assess proposals using a clear assessment framework, focused on the consumer benefits of further fibre roll-out while still promoting competition.” 

"The new approach provides greater certainty about how large investments will be assessed and helps ensure spending is focused on projects that deliver clear benefits for New Zealanders," Mr Gilbertson said.

The Commission has also streamlined the process for assessing capital expenditure proposals through clearer information requirements and more predictable timelines. 

Additional refinements covering areas such as connection costs and insurance will further improve how the regime operates.

The changes are part of the first review of the Fibre Input Methodologies, which set the key regulatory rules for fibre services. Remaining issues, including fibre-specific cost of capital settings, will be considered in the next stage of the review.

Background

Fibre Input Methodologies set the key regulatory rules for fibre services under Part 6 of the Telecommunications Act. They establish how assets are valued, how prices and revenues are determined, and how the cost of capital is calculated, providing regulatory certainty for fibre providers to invest efficiently in the network.

The Commission is required to review the input methodologies at least every seven years.