2degrees, Chorus at odds over Fibre Framework review

Early submissions on fibre review point to potential tensions

Chorus and 2degrees have offered widely opposing views in their initial submissions for the Commerce Commission’s review of its Fibre Regulations Framework.

When completed, the framework review will set up rules for the third regulatory period which starts in 2029. This is required under the Telecommunications Act. It has to be completed by 13 October 2027, so the process is at an early stage.

The Commerce Commission says it wants to focus its review on “the areas of highest value to end-users of fibre services: the cost of capital; investment settings under the capex IM; and the form of control”.

Balancing needs

In its submission, (all submissions are available at the Commerce Commission website.) Chorus argues in favour of retaining the existing revenue cap model.

As the largest fibre wholesaler, it argues that this approach offers flexibility in pricing individual services and supports investment in network expansion. It says the current model effectively balances the need for infrastructure development with consumer interests.

2degrees thinks otherwise. The retail telco says it supports transitioning to a price cap on individual services.

The company says a price cap would better protect consumers from potential price increases. 2degrees wants the regulatory frameworks to adapt to market dynamics. It believes this would foster competition and innovation.

No other retail telcos have submitted responses to the Commerce Commission although there will be opportunities later in the process.

Market dynamics

Chorus is also concerned about market dynamics. It notes the arrival of satellite technologies and the competition from fixed wireless broadband networks, including one run by 2degrees, introduces levels of uncertainty in its business that were not anticipated by the Telecommunications Act.

The company notes it is “the most regulated firm in the country.... While facing more competition than other firms subject to economic regulation.”

Tuatahi First Fibre

Tuatahi First Fibre is also concerned about fibre regulations not keeping up with intensified competition in the wider broadband market. In its submission the company says:

Since the establishment of the fibre IMs, there has been a rapid proliferation of alternative wireless broadband services, including fixed wireless access (FWA) offerings, which are often priced below fibre services.

Hawaiki circuit takes Devoli Trans-Tasman capacity to 600 Gbps

Wholesale telecoms operator Devoli says it is the first telco to provision a dedicated 400 Gbps circuit on the Hawaiki cable between Sydney and Auckland.

This increases Devoli’s total trans-Tasman network capacity to over 600Gbps, following recent upgrades to its New Zealand core network.

Ken Nicod, Devoli’s director of network engineering, says Devoli’s customers are some of New Zealand’s largest businesses and broadband service providers: “Our network capacity is fundamental to their success and ours”.

He says video gaming and cloud apps are driving exponential growth in demand for data.

BW Digital acquired the Hawaiki cable in 2022.

Mobile phone handset market flat in first quarter

Canalys reports worldwide handset shipments grew 0.2 percent in the first quarter of 2025 – essentially a flat market. A total of 296.9 million units were shipped in the quarter.

Samsung remains the largest brand in terms of units, shipping 60 million devices. Apple shipped fewer units; 55 million, but higher average values means the company earned more than its main rival.

Xiaomi, which barely registers in New Zealand, is the third brand internationally shipping 42 million handsets. It is strong in mainland China and in emerging markets. Vivo and Oppo make up the top five, each shipping around 23 million units.

Canalys reports US tariff policies are already having an effect on the market. Apple built up its US inventory in anticipation of tariffs on shipments from China.

The analysis company says tariffs will have a disproportionate impact on sales of low-end phones in the US. This will create uncertainty for phone makers and is likely to mean market volatility.

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