New Zealand Lifts Copper Cable Network Restrictions

Decision to lift the restrictions

The New Zealand government has decided to lift restrictions on copper cable access to the network, which will allow wholesale network provider Chorus to accelerate the closure of this traditional network that primarily serves rural areas. New Zealand Telecommunications Commissioner Tristan Gilbertson stated that rural users are currently transitioning on a large scale from copper cables to “cheaper and better performing alternatives”.

Gilbert stated in a statement, “We believe that there is enough competition in the current market to lift regulations on copper cable access.” He added that since the implementation of regulations twenty years ago, new technologies have completely changed the way rural areas are connected. “Today, less than one-third of rural users still use copper cables, and this number continues to decline as users continue to turn to better alternatives.”

Chorus announced that its goal is to terminate copper cable services in fiber optic coverage areas by the middle of next year and achieve full closure by 2030. The company stated that the number of copper cable lines in non fiber optic areas decreased by 21% last year. As of the end of 2023, Chorus has 1.1 million fiber optic connections and 122000 copper cable lines in the network, of which 80000 are located in areas without fiber optic coverage.

The decision of the New Zealand Business Council has received support from Chorus, as well as retail telecom operators Spark and One NZ, and given the technological structural changes, this adjustment seems inevitable.

In addition to promoting fiber optic networks, Starlink has also been providing services in New Zealand since March 2021, and the country’s penetration rate of fixed wireless access (FWA) ranks among the top in the world. The GSMA think tank predicts that by 2030, New Zealand will become one of the six countries in the world with a FWA penetration rate of 15%.

Users’ attitude

Chorus General Counsel Kristel McMeekin stated that this decision (which still requires final approval from the minister) acknowledges that copper cable networks are nearing the end of their lifespan – the number of copper cable connections has decreased by 95% since regulation began. Despite widespread industry support, rural and user groups still warn that some users may not be prepared yet.

The New Zealand Telecommunications Users Association reminds that some remote area users have expressed concerns about the transition and its costs, especially considering that the existing 3G network will also be shut down by the end of the year. Meanwhile, Mark Hooper, spokesperson for the United Farmers’ Association, told New Zealand Broadcasting that the withdrawal of copper cable networks will leave many agricultural community users feeling uncertain about the future.

Chorus promises to work with the Commerce Committee to ensure that a “clear process” is established during the copper cable network retirement process to support affected customers.