Government Launches Major Review of Telecommunications Sector Regulation

The telecommunications sector, long considered a backbone of modern life, is now under scrutiny as the Government seeks to ensure regulatory settings are fit for purpose in an increasingly digital world.

In a significant move aimed at boosting innovation and economic productivity, the New Zealand Government has announced a comprehensive review of regulations governing the telecommunications sector. The announcement was made jointly by Minister for Regulation David Seymour and Minister for Media and Communications Paul Goldsmith, as the Ministry for Regulation embarks on its fourth sector-wide review.

The telecommunications sector, long considered a backbone of modern life, is now under scrutiny as the Government seeks to ensure regulatory settings are fit for purpose in an increasingly digital world.

"Telecommunications touch almost every part of modern life," said David Seymour. "With 7.22 million active connections—around 1.4 per New Zealander—this sector is as essential as electricity and water."

From online learning and telehealth services to e-commerce and remote work, the digital infrastructure that underpins telecommunications is deeply embedded in the everyday lives of New Zealanders. Yet, according to the Government, current regulations may be hampering the very innovation and competition they are intended to protect.

A Sector Under Pressure

The review comes amid growing concerns from within the industry about outdated regulations that may be stifling progress and raising costs for consumers and businesses alike.

"In a high-cost economy like ours, regulation isn’t neutral—it’s a tax on growth," Seymour added. "That’s why it’s time to take a fresh look."

The Ministry for Regulation will partner with the Ministry of Business, Innovation and Employment (MBIE) to conduct the review. The process will be collaborative, involving direct engagement with telecommunications companies, consumer advocates, technology experts, and regulatory bodies. The Government also emphasized the importance of incorporating the views of ordinary New Zealanders into the consultation process.

Supporting Innovation, Enhancing Competition

Minister Paul Goldsmith underscored the economic importance of the telecommunications industry, which contributes approximately 2.5% to New Zealand’s GDP and is used by nearly every citizen daily.

"We want to ensure we have the right regulatory settings in place for this important market, to support competition, foster innovation and help stimulate economic growth," Goldsmith said.

With the rise of remote work, digital education, and online healthcare, reliable and affordable connectivity has become more critical than ever. The review aims to identify areas where regulation may be lagging behind technological advances or inadvertently discouraging investment and innovation.

What the Review Will Look At

The forthcoming terms of reference, which will be developed in consultation with stakeholders before being submitted to Cabinet, are expected to focus on:

• Barriers to competition in the market

• Incentives for investment in infrastructure and services

• Consumer protection and affordability

• Resilience and reliability of the national telecommunications network

• Alignment with global best practices and technological trends

This approach follows a broader strategy by the Ministry for Regulation to modernize and streamline regulatory frameworks across various industries. The telecommunications sector follows earlier reviews into building consents, early childhood education, and grocery regulations.

A Future-Focused Outlook

Both ministers emphasized that this review is not about deregulation for its own sake but about achieving smarter regulation that enables progress and productivity.

"Better connectivity means improved reliability for businesses, people accessing digital healthcare, and remote learning for kids," Goldsmith said. "Reliable and high-quality digital connectivity networks improve productivity and are essential to growing our economy and easing the cost of living."

Public consultation and industry submissions will begin following the Cabinet’s approval of the review’s terms of reference. The Government has not yet set a timeline for when recommendations or regulatory changes may be implemented, but the review process is expected to begin in earnest in the coming months.

For New Zealanders increasingly reliant on digital tools and services, the results of this review could have wide-reaching implications for connectivity, costs, and the pace of innovation across the country.