Address to theTelecommunication Summit
new-zealand-labour-party
Tue Jun 23 2009 12:00:00 GMT+1200 (New Zealand Standard Time)
Address to theTelecommunication Summit
Tuesday, 23 June 2009, 1:53 pm
Speech: New Zealand Labour Party
Clare Curran
Labour spokesperson Communications and IT
Address to the 10th Annual Telecommunication and ICT Summit
Hyatt Hotel, in Auckland
23 June 2009
We live in an exciting time. Huge technological developments are changing the way we communicate and interact with each other.
At no other time in history has information and communications technology been more important.
The complexity and sheer number of devices, services and technologies can be confusing to consumers, to businesses and to the state attempting to develop policy, anticipate future developments and get the competitive and legislative framework right.
When my grandmother was born, aeroplanes had only just been invented. Now, my children (twin boys), who turned 9 yesterday are becoming frighteningly computer competent, the latest craze is a game called Club Penguin they play with all their friends on the internet. They are more familiar than me with all the various controls in the house and they know more functions than I do on my Blackberry. I will say up front that I’m not a geek. I think that’s a plus. My background is communications, public relations. I’m an aware consumer; I’m a politician (new to parliament, but not new to politics). I’m also a big picture kind of person, a future thinker and that’s strength, because I can look at this industry with a critical eye.
Every time human society has developed a new network infrastructure, huge changes have resulted.
Think of the effects of roads, railways, the shipping lanes, the electricity and telephone networks and air routes have had on our society, our economy and our understanding of the world. And now broadband. And wireless networks.
This broadband and computing revolution we are living through is like these previous technological leaps and but also unlike them at the same time.
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It is like previous revolutions because it is a new network, and will give people new ways to work together, to be together, to share and grow and enjoy life.
It is unlike because it deals not with goods, not with travel, but with information. The network and the digitisation of data mean we have immediate access to more knowledge and information than ever in history, and we can do what we like with it. And we, the consumers, are not only passively receiving the information; we’re starting to do stuff with it ourselves – and as time goes on we’re producing it, too.
The effects are huge and far reaching.
We don't know what they all are yet: who would have thought that e-commerce, free distribution channels for music by budding artists, live video conversation, social networking sites, blogs, Google Street-View, or even God help us Twitter, would have come about? I have to admit I have started twittering, to the dismay of some of my family, and interestingly, to the obvious close interest of some on the other side of the political fence.
Many people think twittering is for twits, but who would have thought it could become a major organising tool as it has in Iran in recent weeks in the wake of the recent election?
There are so many new and emerging applications it’s hard to keep up. Easy bank payments replacing cheques. Live video streaming of concerts, conferences, big events. The ability stick a Radio Frequency ID tag on each cow in your herd all linked to an Internet- based automatic milking system and make use of the data to improve agricultural productivity. AirNZ RFID tags that many of us have got attached to our mobile phones now.
Tracking the news online and the unrelenting online transformation of our traditional media. The impacts on schools, universities, workplace training, health service delivery. My Sky, HD TV, 3D TV, Blue ray game consoles, Skype, 3G… the list goes on.
We know there’s more to come and that all these changes add up to a faster, freer and more prosperous society.
But we’re yet to properly discuss the extent to which some of these technologies are becoming essential services and not merely utilities or devices for gratuitous entertainment.
And there’s a great deal more discussion required on the role of government in developing, fostering and growing the information and communications industry. Where to invest? What sort of investment, how much? And what mix of policy settings? And what sort of leadership can government provide?
There’s pretty much universal agreement in this country that widespread, high-speed broadband is essential for New Zealand to participate effectively in the contemporary world.
The issues are about how to deliver it, where to deliver it, how much it will cost and what role the state needs to have. Let alone what it will be used for and who will deliver those services.
And the importance of future thinking and vision in the industry. When the Dick Seddons, Peter Frasers and Michael Joseph Savages invested taxpayers’ money in the road, rail and electricity networks that make up our modern society they took a leap of faith. They had the foresight to know that public investment was required in infrastructure that the private sector couldn’t or wouldn’t deliver equitably across society in order to drive our economy, create jobs and take us forward as a nation. That was Government’s role. And it is government’s role to make sure it’s done equitably.
The previous Labour Government had a sound strategy to reform this industry and it delivered results. Our focus was around a couple of key principles:
- access, and
- affordability
We wanted to make sure that people had meaningful access to technology. That's what our Digital Strategy was built around. I pay tribute here to my predecessor in this portfolio and previous Communications Minister David Cunliffe for his intellect, foresight and his grit.
Let’s just spell out some of what the Labour Govt did: unbundling the local loop, strengthening the Commerce Commission, installing the office of the telecommunications commissioner, operational separation.
Collectively, this added up to world’s best practice in regulatory terms. It was about reinforcing a competitive market, never about replacing the market.
We understood - in a way the current government sadly does not - that it's about more than connecting people up. They need to know how to use the technology they have access to. It has to be relevant to their lives. They need to feel that it's a secure environment where they and their kids can learn about the world and each other.
Affordability is a big issue too. Labour thinks a digital divide is a bad thing, and money is a big issue for a lot of Kiwi families. People won't use services if the price isn't right.
So that speaks to universal service requirements, so everyone can access technology. Digital inclusion, no matter where you live or what your socio-economic circumstances. That’s not woolly thinking. Inclusion is good for this industry, and it’s good for society.
We also know that educated users and content are just as important. Along with connectivity. Getting people connected. I’d just like to point out here that despite being in power for seven months, this government hasn’t sorted that bit out yet.
I also want to point out for the record that the previous Labour Government didn’t get it right on everything. One area it particularly didn’t get right was copyright. As the new spokesperson for communications and IT I’m proud to say we’ve shifted on that issue and are doing some new thinking. More about that later.
So thinking about what Labour’s key drivers were in government:
- Developing a NZ Digital Strategy
- Balanced policy and funding
- Not pushing the market around too much
- Competition at the heart of an efficient market
The 2005 reforms were not red-tape reforms, they were pro-competitive. And they’ve seen some results.
OECD statistics show New Zealand has seen the third highest growth in broadband connections in 2008 - up 3.77 connections per 100 homes. And we are now in 18th place out of 30 - continuing the gradual improvement from No 23. And as even David Farrar noted on Kiwiblog, the Labour Govt’s telecommunication reforms were partly responsible for the very significant closing of the gap. Yes we have a way to go, but we’re moving in the right direction. And let’s hope we continue to do so.
Being in Opposition now, our role is to be out there as much as possible, listening, learning and engaging with the industry, as well as holding this government to account on its policy (not that there’s been a lot of policy announced) and watching closely on how it delivers on that policy.
And what we’ve observed is that there are worrying signs of backsliding in the progress that has been made.
What signs? Take unbundling. Last week’s decision on sub-loop unbundling has resulted in most competitors saying the access rates are prohibitive and has caused a 10% jump in Telecom’s share price. It was a fundamental tenet of the unbundling process to have open and competitive terms, down to the cabinet. The reforms of the last government simply won’t work without getting the price and the terms right. Keeping wholesale prices competitive.
And take undertakings. Last week’s government decision giving Telecom leeway in its separation undertakings may not have appeared to amount to much, but could be the start of a negotiated package. So I ask the Minister and his new government today to confirm that it will protect the total operational separation undertakings and that any future amendments be granted only after full consultation with the parties affected with the opportunity to make written and public submissions.
Moving on to the rollout of broadband, firstly, it is now out there that the National Government’s $1.5 billion policy to deliver ultrafast broadband to 75% of NZ homes is unachievable. Even with a matching dollar for dollar investment from the private sector. The Australian Government has put a figure of $43 billion, because they know that’s around what it will cost. Originally they were going to invest $4.7 billion, but revised that figure earlier this year because they were advised it would not provide value for money to the commonwealth.
So I think it would have been a brave for this government to either acknowledge it wasn’t going to deliver to 75% of homes and revise expectations, or to say well it’s going to cost more, we know we’re in a recession, but here’s how we’re going to do it.
It’s like providing the money to build a big flash highway (something this govt likes to do) forgetting that all the people in the houses have got driveways full of potholes and older cars in their garages which will struggle to get onto the road and then wont know what to do when they get there. Unless they pay for the new car and the new driveway themselves.
However, we are watching with great interest to see how the government plans to roll out its $1.5 billion. The choice appears to lie between a Telecom-led rollout or a growing coalition of electricity lines companies and independent fibre operators called the
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