Download Weekly: ComCom intensifies mobile investigation

This week the Commerce Commission widened the scope of its mobile market investigation. It will now include 5G, looking at deployment and spectrum allocation. The Commission will investigate competition issues. Potential obstacles to current or future market developments are also in the spotlight.

The Commission released original terms of reference for an inquiry in October. At the time, the mobile carriers made it clear they wanted Commission to keep its nose out of their business.

Former Communications Minister Simon Bridges triggered the inquiry last year. He wrote a letter to the Telecommunications Commissioner. In it he pointed out a possible lack of competition including the near absence of MVNOs from New Zealand.

Networks without infrastructure

Mobile virtual network operators are mobile companies that don't own their own infrastructure. Instead they buy wholesale services from existing network operators. They are common overseas and are indicative of healthy market competition.

The commissioner, Stephen Gale says the study will allow regulatory efforts to keep pace with the rapid changes in mobile markets.

He says: “Mobile technology is a critical enabler for business productivity and social interaction. We know that New Zealanders love their mobile devices with more than 6.4 million in use – or about 1.3 per person.

More oversight

“This study will help us identify areas that may need more or less regulatory oversight from us."

Gale says the investigation will also inform consumers, the industry, and policymakers on market performance.

Tuanz CEO Craig Young welcomed the broader scope of the investigation. He says his organisation has called for an independent study of the market structure. The Commission review includes some of Tuanz's recommendations.

Young says his members recognise recent benefits of improved competition. He names the third network and investments in technology as pluses. Yet he says they want to see a full review of where we are and what we need to ensure that strong competition remains in this market”.

The review will take time. The Commission says to publish an issues paper around the middle of this year. But that's only the first stage. The whole process is likely to drag on for over a year.

Chorus broadcast over fibre

Chorus will begin testing a direct television broadcasting service on its fibre network in May. The service has enough capacity to deliver high definition TV using 4K, or even 8K material.

The broadcast service will use a second port on the optical network terminal that is installed in homes. It operates in parallel with any broadband services that are in use and does not affect them.

Chorus says it is likely to be used by local broadcasters wanting to offer a higher quality service. At the moment broadcasters either need to partner with ISPs or develop their own internet apps.

The Australian reports on imminent Vocus sale

The Australian newspaper says Vocus is close to a deal with Trustpower for its New Zealand business. The report says the money on offer is well below the company's A$400 million target.

Vocus made not comment on the story. It says the sale is progressing as planned and will be completed by June. The company said the New Zealand assets will only be sold if it can get an 'appropriate return'.

Sky loses Rugby World Cup, John Fellet

Sky TV's shares plummeted after the company said it is not a preferred bidder for the rights to the 2019 Rugby World Cup.

While Sky didn't name who is the preferred bidder, it's likely to be someone who offers sport in an online streaming format.

Two names have emerged as likely preferred bidders. Last year Amazon dipped its toes in the sports broadcasting pool. Closer to home, are press reports of a joint bid from Spark and TVNZ.

Sky's statement comes two days after chief executive John Fellet announced he would retire this year. Fellet has been with the company a long time and has been behind the strategy of aggressive bidding for major sports events.

Vodafone's turn to showcase 5G

Vodafone had its turn in the 5G spotlight a week after Spark's first public demonstration of its technology. The company showed its pre-standard 5G connection at its Innov8 site in Takapuna. The demonstration included robots and virtual reality. Vodafone claimed its 5G gaming tournament was a world first.

While Spark's 5G demonstration was held using Huawei kit, Vodafone worked with Nokia.

At the event Vodafone CEO Russell Stanners said 5G would be an incremental upgrade to the company's existing mobile network.

Over $5 million lost to online crime

New Zealand's Computer Emergency Response Team says online criminals netted $NZ5.3 million from locals last year although this could be the tip of the iceberg.

The team's 2017 figures reveal the public reported 1131 significant cyber-breaches. Most of the reported losses were in the fourth quarter of the year. Cert heard of 377 incidents in the quarter, worth about $3.4 million.

Not all breaches are reported. In fact publicly notified incidents are only a fraction of the total.