Commission proposes improvements to fibre rules to support NZ’s digital future
The Commerce Commission is proposing targeted improvements to the rules governing fibre networks to ensure they support continued investment while protecting price and quality for consumers.
The proposals form part of the Commission’s first review of the Fibre Input Methodologies (IMs), which set the key regulatory rules for fibre providers under the Telecommunications Act.
Over the past five years, the Commission has established a new regulatory framework for fibre services, alongside a number of consumer protection and monitoring initiatives.
Telecommunications Commissioner Tristan Gilbertson said the review is about ensuring the regulatory framework keeps pace with a rapidly evolving telecommunications market.
“Fibre broadband is used by millions of Kiwis every day to work, study, conduct business and stay connected.
“Our job is to make sure the rules support ongoing investment in world-class fibre networks and services that are critical to New Zealand’s digital economy.
“The core rules for fibre networks are working well. This review focuses on targeted improvements to simplify and streamline the framework, so it remains fit for purpose as the market evolves.”
One of the key proposals in the draft decision is introducing a clearer investment test for large fibre network expansion projects. “This change clarifies how major fibre expansion proposals will be assessed,” Mr Gilbertson said.
“By setting out the framework upfront, we’re reducing uncertainty and helping ensure Chorus can invest in expanding the fibre network where there’s a sound commercial case and clear benefits for consumers.”
Under the proposal, large expansion projects would be assessed using a cost-benefit framework, including analysis of the value consumers place on fibre services through measures such as willingness to pay.
The draft decision also proposes changes to improve the capital expenditure proposal process, including clearer information requirements and adjustments to regulatory timelines. These changes are intended to simplify and streamline the framework while making it more predictable for stakeholders.
Other proposed changes include refinements to the treatment of connection capital expenditure and insurance, alongside several other targeted amendments.
The Fibre Input Methodologies review is being conducted in two stages. The draft decision released today covers issues relevant to the next fibre price-quality reset, which will apply from 2029.
Further issues — including fibre-specific cost of capital parameters — will be considered in the second stage of the review. The Commission is currently consulting separately on cost of capital input methodologies that apply across fibre and other regulated infrastructure sectors.
Submissions on the draft decision are open until 16 April 2026, with cross-submissions due by 6 May 2026.
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.
Final decisions on this stage of the Fibre Input Methodologies review are expected in Q3 2026.