This article from the Domimion Post today was rather interesting.
It was written by the father of one of my mates which is partially why it caught my attention but it does also raise the issue of whether the TSO in place in New Zealand is actually helping the country progress or actually causing us to move backwards.
Do people in New Zealand really want to pay over $40 for a line rental just to get "free" calls? With the launch of Telecom's Next Generation Network within the next year your phone line will essentially be a broadband internet connection with a VoIP phone. Phone companies and ISP's are going to be one and the same. The current Telecom TSO will not cover the NGN, what changes are made to this agreement before the launch of the NGN are going to be very interesting.
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Comment by techremarks, on 4-Apr-2006 12:56
You don't have to pay $42 for line rental. Just move to an area where Telecom has competition, like Wellington and Christchurch, and you are only paying $34. :-)
Comment by juha, on 19-Apr-2006 10:59
That is a very interesting article actually. I fully agree that the TSO is bad and should go because it isn't needed in 2006. It's a tax on competition and a subsidy for Telecom that incumbents in other countries don't enjoy. However, there's no chance of it disappearing, ever. First of all, Telecom wants to keep the money for nothing - understandable. Second, the TSO puts the brakes on competition; third, the TSO gives Telecom a direct line (ha!) into the government. Most importantly though, the government does not have the gumption to remove the TSO. Cunliffe and Co are under the misguided impression that the TSO is something of a social contract that enables people to have phone and low-speed data service. If they touch it, voters will get upset is the fear. Telecom knows this, and plays on it.
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