1. 1 2008: A Regulatory Odyssey TUANZ After 5’s 17-19 March 2008

2. 2 Who we are and what we do The Telecommunications Carriers’ Forum (TCF) plays a vital role in the New Zealand telecommunications industry by working collaboratively on the development of key industry standards and codes of practice that underpin the digital economy. The Telecommunications Carriers’ Forum (TCF) plays a vital role in the New Zealand telecommunications industry by working collaboratively on the development of key industry standards and codes of practice that underpin the digital economy. The TCF works with a wide variety of industry participants and government agencies to promote competition and investment in the sector, accelerate the introduction of new generation services, and encourage excellence in customer service. The TCF works with a wide variety of industry participants and government agencies to promote competition and investment in the sector, accelerate the introduction of new generation services, and encourage excellence in customer service. The TCF is recognised by the Commerce Commission as the industry body that develops codes of practice envisaged by the Telecommunications Act. The TCF is recognised by the Commerce Commission as the industry body that develops codes of practice envisaged by the Telecommunications Act. We undertake a mix of self-regulatory work, with an increasing focus on consumer issues. We undertake a mix of self-regulatory work, with an increasing focus on consumer issues.

3. 3 Who we are and what we do The TCF is an incorporated society formed and operated by its members – most of the major telecommunications companies currently operating in NZ: The TCF is an incorporated society formed and operated by its members – most of the major telecommunications companies currently operating in NZ: This year, we are undertaking a strategy and constitutional review and will be considering ways to broaden our membership This year, we are undertaking a strategy and constitutional review and will be considering ways to broaden our membership CallPlus Compass Telecom TelstraClear Vodafone WorldxChange Woosh Kordia Orcon TrustPower NZ Communications Vector Communications

4. 4 Who we are and what we do Our Board Our Board –Independent Chair - Malcolm Alexander –Three Tier 1 Representatives –Two Group Member Representatives –Consumer Representative (Ernie!) Key Staff Key Staff –Ralph Chivers, CEO –Susan Wells & team

5. 5 2007: A Stellar Year Launched Number Portability 1 April – and this time it was no joke! Launched Number Portability 1 April – and this time it was no joke! Launched the Telecommunications Dispute Resolution Service, an independent service for consumers and small businesses to resolve complaints up to $12,000 Launched the Telecommunications Dispute Resolution Service, an independent service for consumers and small businesses to resolve complaints up to $12,000 Completed a Co-siting code of practice for multi-use telecommunications sites Completed a Co-siting code of practice for multi-use telecommunications sites Completed ground work on Mobile Premium Messaging code of practice Completed ground work on Mobile Premium Messaging code of practice Kicked off: Kicked off: o Disconnection code of practice o Emergency services code of practice o Code for unauthorised use of cell phones in prisons

6. 6 2007: A Stellar Year Made a significant contribution to the technical and operational aspects of: Made a significant contribution to the technical and operational aspects of: o Local Loop Unbundling (LLU) and co-location o Unbundled Bitstream Services (UBA) o LLU and UBA backhaul Acknowledged by the ComCom as playing a significant role in progressing the introduction of new regulated services (thanks Ross!) Acknowledged by the ComCom as playing a significant role in progressing the introduction of new regulated services (thanks Ross!) Awarded the 2007 TUANZ Chairman’s Award (thanks Merv!!) Awarded the 2007 TUANZ Chairman’s Award (thanks Merv!!) Appointed inaugural CEO (but had to wait forever for him to turn up!) Appointed inaugural CEO (but had to wait forever for him to turn up!) Clearly... we have moved up a gear or two as an industry... and we have certainly MOVED ON !!! Clearly... we have moved up a gear or two as an industry... and we have certainly MOVED ON !!!

7. 7 2008: A Regulatory Odyssey For the whole industry, 2006 was a watershed year and 2007 delivered critical progress … For the whole industry, 2006 was a watershed year and 2007 delivered critical progress … … but the real work, and possibly the hardest work, lies ahead of us. … but the real work, and possibly the hardest work, lies ahead of us. So in many respects, despite all the progress we have made, we are at still the edge of the frontier. So in many respects, despite all the progress we have made, we are at still the edge of the frontier.

8. 8 2008: A Regulatory Odyssey To be done: Delivery of the benefits of unbundling reforms Competitors in the market place providing services using LLU and UBA Competitors in the market place providing services using LLU and UBA Standard Terms Determination for “sub-loop” unbundling (access to Telecom’s cabinets) which is economically challenging for entrants Standard Terms Determination for “sub-loop” unbundling (access to Telecom’s cabinets) which is economically challenging for entrants Investigating the alternatives to sub-loop unbundling, including Investigating the alternatives to sub-loop unbundling, including o Dual Feeding (DSLAMS in the exchange and cabinet serving the same area) o Line Sharing (one party has POTS the other broadband) o Unbundled Ports (“deeper” access to DSLAMS)

9. 9 2008: A Regulatory Odyssey To be done: Increased Mobile/Wireless Competition Standard Terms Determination for “co-location” of mobile sites Standard Terms Determination for “co-location” of mobile sites First deployments of WiMax First deployments of WiMax New UMTS networks (NZ Communications and Telecom) New UMTS networks (NZ Communications and Telecom)

10. 10 2008: A Regulatory Odyssey To be done: Operational Separation Seeks to fundamentally change the incumbents incentives and behaviour, providing equivalent access to regulated products internally and externally Seeks to fundamentally change the incumbents incentives and behaviour, providing equivalent access to regulated products internally and externally Together with unbundling reforms will change the way the market operates Together with unbundling reforms will change the way the market operates Significant and challenging implementation effort this year and over the next 4 years for Telecom and the industry Significant and challenging implementation effort this year and over the next 4 years for Telecom and the industry With accounting separation to come With accounting separation to come

11. 11 2008: A Regulatory Odyssey To be done: Transition to all-IP networks and services And just when you thought we had cracked all of that … And just when you thought we had cracked all of that … … the industry is undergoing a generational change in technology … … that is already resulting in a convergence of services and networks … … and that fundamentally changes the relationships between providers of services, providers of networks, devices and consumers. It is INEVITABLE that the existing regulatory regime, despite just having been enacted, will have to be reviewed and reformed. It is INEVITABLE that the existing regulatory regime, despite just having been enacted, will have to be reviewed and reformed.

12. 12 2008: A Regulatory Odyssey Which makes for a tantalising and challenging 2008!!! QUESTIONS