[ snip]

> It could also be argued that the protected monopoly it enjoys is in fact
> a subsidy and which thus should include providing service in outlying areas.

> Without TSO money and a protected monopoly to bolster coffers, it would
> be unreasonable to expect a competitor to provide the same service as
> the terms are clearly different.

We as tax payers via the government are supporting this monopoly. "We" pay Telecom a subsidy to supply a service to all New Zealanders, this is clearly not happening. I think it is reasonable to expect a similar service to all New Zealand householders and that includes High Speed broadband (128k is not high speed broadband).
 
I would like to see the commissioner put a 5 year network and service development plan in place that Telecom need to commit to, the penalties of non compliance need to be severe enough to ensure that the plan is adhered to. This is not to much to expect.
Telecom provide a mission critical service that should be closely regulated by the government as there are no market forces in place to guide Telecom.
 
I do not think we need more competition, two monopolies in a market is far worse than one - we just need stricter rules for Telecom to abide by. Transparency is a good place to start

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