Telecommunications Act 2001

Commission review of industry dispute resolution schemes

Schedule 3: Procedure for altering regulated services

You could also call this:

"How to Change the Rules for Phone and Internet Services"

Illustration for Telecommunications Act 2001

The Telecommunications Act 2001 has a procedure for altering regulated services. You can think of regulated services as rules that help control how phone and internet companies work. The procedure is like a step-by-step guide. The Commission is a group of people who help make decisions about these rules. They investigate and make reports to the Minister. The Minister is a person who makes the final decisions about the rules. They consider the Commission's reports and recommendations, and then decide what to do. There are different types of services, like designated services and specified services. The procedure is a bit different for each type. The Commission and the Minister have to follow certain time limits and rules when they're making decisions. They also have to consider what people think and want. You can give your thoughts and opinions during the investigation process. The goal is to make sure the rules are fair and work well for everyone.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM128253.


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3Procedure for altering regulated services Empowered by ss 5, 64, 68

1Procedure for designated services or specified services (except specified services that are to become designated services)

1Commission's investigation

  1. The Commission may, on its own initiative or if requested to do so in writing by the Minister, commence an investigation into whether or not Schedule 1 should be altered in any of the ways set out in section 66 or 67 (the proposed alteration) if the Commission is satisfied that there are reasonable grounds for an investigation into the matter.

  2. If an investigation has been requested by the Minister and the requirements set out in subclause (1) have been met, the Commission must commence the investigation not later than 10 working days after receiving the Minister's written request.

  3. Despite subclause (1), the Commission must consider, at intervals of not more than 5 years after the date on which a designated service or specified service came into force, whether there are reasonable grounds for commencing an investigation into whether the service should be omitted from Schedule 1 under section 66(1)(b).

  4. Repealed
  5. If the Commission decides that there are reasonable grounds for commencing an investigation into whether a designated service or specified service should be omitted from Schedule 1 under section 66(1)(b), the Commission must commence the investigation not later than 15 working days after making that decision.

  6. The Commission must give public notice of the commencement of an investigation under this clause.

  7. This clause is subject to sections 69AH, 156AP, and 211.

  8. Subclause (3) does not apply in relation to the following:

  9. copper fixed line access services:
    1. Chorus’s unbundled copper local loop network co-location:
      1. Chorus’s unbundled copper local loop network backhaul (telephone exchange to interconnect point):
        1. Chorus’s unbundled bitstream access backhaul.
          Notes
          • Schedule 3 clause 1: substituted, on , by section 58 of the Telecommunications Amendment Act (No 2) 2006 (2006 No 83).
          • Schedule 3 clause 1(3): editorial change made by the PCO, on , under sections 86(1) and 87(l)(iii) of the Legislation Act 2019 (2019 No 58).
          • Schedule 3 clause 1(4): repealed, on , by section 15(1) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).
          • Schedule 3 clause 1(5): editorial change made by the PCO, on , under sections 86(1) and 87(l)(iii) of the Legislation Act 2019 (2019 No 58).
          • Schedule 3 clause 1(7): added, on , by section 88 of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).
          • Schedule 3 clause 1(7): amended, on , by section 15(2) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).
          • Schedule 3 clause 1(8): inserted, on , by section 15(3) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).

          2Draft report

          1. After public notice of the investigation has been given, the Commission must—

          2. prepare a draft report; and
            1. give public notice of the draft report; and
              1. include in the public notice—
                1. the closing date for submissions, which must not be later than 20 working days after the date of giving public notice; and
                  1. the date of any public hearing to be held under clause 3.
                  2. The draft report must—

                  3. include the detail of the proposed alteration; and
                    1. identify any recommendations that the Commission considers to be sufficiently related to each other that they ought to be considered together.
                      Notes
                      • Schedule 3 clause 2(2): substituted, on , by section 58 of the Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

                      3Conferences or public hearing

                      1. The Commission may do either of the following things not later than 10 working days after the closing date for submissions:

                      2. hold conferences in relation to the proposed alteration:
                        1. hold a public hearing in relation to the proposed alteration if the Commission is satisfied that it is in the public interest to do so.
                          1. The Commission may invite a person who has a material interest in the proposed alteration to attend a conference held under subclause (1).

                          2. Repealed
                          Notes
                          • Schedule 3 clause 3(1): amended, on , by section 15(4) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).
                          • Schedule 3 clause 3(3): repealed, on , by section 15(5) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).

                          4Final report of recommendation of Commission

                          1. The Commission must do the following things not later than 240 working days after the date of giving public notice under clause 1(6):

                          2. prepare a final report regarding the proposed alteration:
                            1. deliver the report to the Minister.
                              1. In preparing the final report, the Commission must consider—

                              2. all submissions made on the draft report; and
                                1. all information and opinions presented or expressed at the public hearing (if any) on the draft report.
                                  1. A final report must include—

                                  2. the detail of the proposed alteration; and
                                    1. a recommendation by the Commission as to—
                                      1. whether or not the proposed alteration should be made:
                                        1. in the case of a proposed alteration to a designated service, whether or not the Minister's decision regarding the proposed alteration should be deferred for any period that the Commission thinks fit; and
                                        2. the reasons for the Commission's recommendation; and
                                          1. the majority view and any dissenting views of the members of the Commission regarding the recommendation.
                                            1. The Commission may, if it thinks fit, identify any recommendations included in the final report that it considers to be sufficiently related to each other that they ought to be considered together by the Minister.

                                            2. A failure by the Commission to comply with subclause (1) does not invalidate a final report prepared by the Commission.

                                            3. This clause is subject to section 156AP.

                                            Notes
                                            • Schedule 3 clause 4(1): amended, on , by section 15(6) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).
                                            • Schedule 3 clause 4(1): amended, on , by section 58 of the Telecommunications Amendment Act (No 2) 2006 (2006 No 83).
                                            • Schedule 3 clause 4(3)(d): substituted, on , by section 26(1) of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).
                                            • Schedule 3 clause 4(4): added, on , by section 58 of the Telecommunications Amendment Act (No 2) 2006 (2006 No 83).
                                            • Schedule 3 clause 4(4A): inserted, on , by section 15(7) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).
                                            • Schedule 3 clause 4(5): added, on , by section 88 of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).

                                            5Commission must give written reasons for not meeting time limit (Repealed)

                                              Notes
                                              • Schedule 3 clause 5: repealed, on , by section 15(8) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).

                                              5AMinister may request clarification of final report

                                              1. After receiving a final report under clause 4, the Minister may request that the Commission—

                                              2. clarify any aspect of the report:
                                                1. provide any additional information that is necessary to understand the nature and implications of the Commission's recommendations that are included in the final report.
                                                  1. The Commission must comply with a request made under subclause (1) within a period and in a manner agreed between the Commission and the Minister.

                                                  2. Subclause (1) does not authorise the Minister to require the Commission to undertake any further analysis of, or investigation into, any matter included in the final report.

                                                  Notes
                                                  • Schedule 3 clause 5A: inserted, on , by section 58 of the Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

                                                  6Decision by Minister on Commission's recommendations

                                                  1. In considering a final report under clause 4, the Minister must—

                                                  2. consider together any recommendations that the Commission has, under clause 4(4), identified in its final report to be sufficiently related to each other (a set of related recommendations); and
                                                    1. consider separately any other recommendations.
                                                      1. The Minister may—

                                                      2. accept or reject—
                                                        1. each set of related recommendations:
                                                          1. each of the other recommendations:
                                                          2. require the Commission to reconsider, for any reasons specified by the Minister,—
                                                            1. any set of related recommendations or any aspect of that set of related recommendations:
                                                              1. any of the other recommendations or any aspect of those other recommendations.
                                                              Notes
                                                              • Schedule 3 clause 6: substituted, on , by section 58 of the Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

                                                              7Deferral of Minister's decision

                                                              1. If the Minister accepts the Commission's recommendation that the Minister's decision be deferred for any period that the Commission thinks fit,—

                                                              2. the Minister must refer the recommendation back to the Commission for a report after the end of the period on whether the recommendation should be amended; and
                                                                1. the Commission must, after the end of that period,—
                                                                  1. prepare a draft report stating that the period has expired and setting out any amendments it wishes to make to the recommendation; or
                                                                    1. prepare a final report that includes a recommendation that the Minister should accept an undertaking under Schedule 3A and deliver that report to the Minister.
                                                                    2. If subclause (1)(b)(i) applies, the Commission must also—

                                                                    3. give public notice of the draft report; and
                                                                      1. include in the public notice the closing date for submissions, which must not be later than 20 working days after the date of giving public notice; and
                                                                        1. prepare, as soon as is reasonably practicable after the closing date for submissions, a final report to the Minister that contains the matters set out in the draft report and summarises, and makes recommendations on, the submissions received on the draft report.
                                                                          1. Clause 6 again applies to the report referred to in subclause (1)(b)(ii) or (2)(c), as the case may be.

                                                                          Notes
                                                                          • Schedule 3 clause 7: substituted, on , by section 58 of the Telecommunications Amendment Act (No 2) 2006 (2006 No 83).
                                                                          • Schedule 3 clause 7(1)(a): amended, on , by section 15(9) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).
                                                                          • Schedule 3 clause 7(1)(b): amended, on , by section 15(10) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).

                                                                          2Procedure for specified services to become designated services

                                                                          8Commission's investigation

                                                                          1. The Commission may, on its own initiative or if requested to do so in writing by the Minister, commence an investigation into whether or not Schedule 1 should be altered by—

                                                                          2. omitting a telecommunications service from Part 3 (the proposed omission); and
                                                                            1. adding it to Part 2 (the proposed addition).
                                                                              1. The Commission may commence an investigation only if it is satisfied that there are reasonable grounds for it.

                                                                              2. If an investigation has been requested by the Minister and the requirement set out in subclause (2) has been met, the Commission must commence the investigation not later than 10 working days after receiving the Minister's written request.

                                                                              3. The Commission must give public notice of the commencement of the investigation.

                                                                              9Draft report

                                                                              1. After public notice of the investigation has been given, the Commission must—

                                                                              2. prepare a draft report; and
                                                                                1. give public notice of the draft report; and
                                                                                  1. include in the public notice—
                                                                                    1. the closing date for submissions, which must not be later than 15 working days after the date of giving public notice; and
                                                                                      1. the date of any public hearing to be held under clause 10.
                                                                                      2. The draft report must include the detail of the proposed omission and addition.

                                                                                      10Conferences or public hearing

                                                                                      1. The Commission may do either of the following things not later than 10 working days after the closing date for submissions:

                                                                                      2. hold conferences in relation to the proposed omission and addition:
                                                                                        1. hold a public hearing in relation to the proposed omission and addition if the Commission is satisfied that it is in the public interest to do so.
                                                                                          1. The Commission may invite a person who has a material interest in the proposed omission and addition to attend a conference held under subclause (1).

                                                                                          Notes
                                                                                          • Schedule 3 clause 10(1): amended, on , by section 15(11) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).

                                                                                          11Final report of recommendation of Commission

                                                                                          1. The Commission must do the following things not later than 120 working days after the date of giving public notice under clause 8(4):

                                                                                          2. prepare a final report regarding the proposed omission and addition:
                                                                                            1. deliver the report to the Minister.
                                                                                              1. In preparing the final report, the Commission must consider—

                                                                                              2. all submissions made on the draft report; and
                                                                                                1. all information and opinions presented or expressed at the public hearing (if any) on the draft report.
                                                                                                  1. A final report must include—

                                                                                                  2. the detail of the proposed omission and addition; and
                                                                                                    1. a recommendation by the Commission as to—
                                                                                                      1. whether or not the proposed omission and addition should be made:
                                                                                                        1. whether or not the Minister's decision regarding the proposed omission and addition should be deferred for any period that the Commission thinks fit; and
                                                                                                        2. the reasons for the Commission's recommendation; and
                                                                                                          1. the views of 2 members of the Commission (other than the Telecommunications Commissioner) regarding the recommendation.
                                                                                                            1. The Commission may, if it thinks fit, identify any recommendations included in the final report that it considers to be sufficiently related to each other that they ought to be considered together by the Minister.

                                                                                                            2. A failure by the Commission to comply with subclause (1) does not invalidate a final report prepared by the Commission.

                                                                                                            Notes
                                                                                                            • Schedule 3 clause 11(1): amended, on , by section 15(12) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).
                                                                                                            • Schedule 3 clause 11(4): added, on , by section 58 of the Telecommunications Amendment Act (No 2) 2006 (2006 No 83).
                                                                                                            • Schedule 3 clause 11(5): inserted, on , by section 15(13) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).

                                                                                                            12Commission must give written reasons for not meeting time limit (Repealed)

                                                                                                              Notes
                                                                                                              • Schedule 3 clause 12: repealed, on , by section 15(14) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).

                                                                                                              12AMinister may request clarification of final report

                                                                                                              1. After receiving a final report under clause 11, the Minister may request that the Commission—

                                                                                                              2. clarify any aspect of the report:
                                                                                                                1. provide any additional information that is necessary to understand the nature and implications of the Commission's recommendations that are included in the final report.
                                                                                                                  1. The Commission must comply with a request made under subclause (1) within a period and in a manner agreed between the Commission and the Minister.

                                                                                                                  2. Subclause (1) does not authorise the Minister to require the Commission to undertake any further analysis of, or investigation into, any matter included in the final report.

                                                                                                                  Notes
                                                                                                                  • Schedule 3 clause 12A: inserted, on , by section 58 of the Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

                                                                                                                  13Decision by Minister on Commission's recommendations

                                                                                                                  1. In considering a final report under clause 11, the Minister must—

                                                                                                                  2. consider together any recommendations that the Commission has, under clause 11(4), identified in its final report to be sufficiently related to each other (a set of related recommendations); and
                                                                                                                    1. consider separately any other recommendations.
                                                                                                                      1. The Minister may—

                                                                                                                      2. accept or reject—
                                                                                                                        1. each set of related recommendations:
                                                                                                                          1. each of the other recommendations:
                                                                                                                          2. require the Commission to reconsider, for any reasons specified by the Minister,—
                                                                                                                            1. any set of related recommendations or any aspect of that set of related recommendations:
                                                                                                                              1. any of the other recommendations or any aspect of those other recommendations.
                                                                                                                              2. If the Commission makes a recommendation in the final report that the proposed omission and addition should be made, the Minister must make a decision under subclause (2) within 6 months after—

                                                                                                                              3. the date on which the Minister receives that report; or
                                                                                                                                1. as the case may be, the date on which the Commission complies with a request under clause 12A.
                                                                                                                                  Notes
                                                                                                                                  • Schedule 3 clause 13: substituted, on , by section 58 of the Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

                                                                                                                                  14Deferral of Minister's decision

                                                                                                                                  1. If the Minister accepts the Commission's recommendation that the Minister's decision be deferred for any period that the Commission thinks fit,—

                                                                                                                                  2. the Minister must refer the recommendation back to the Commission for a report at the end of the period on whether the recommendation should be amended; and
                                                                                                                                    1. the Commission must, at the end of that period,—
                                                                                                                                      1. prepare a draft report stating that the period has expired and setting out any amendments it wishes to make to the recommendation; or
                                                                                                                                        1. prepare a final report that includes a recommendation that the Minister should accept an undertaking under Schedule 3A and deliver that report to the Minister.
                                                                                                                                        2. If subclause (1)(b)(i) applies, the Commission must also—

                                                                                                                                        3. give public notice of the draft report; and
                                                                                                                                          1. include in the public notice the closing date for submissions, which must not be later than 20 working days after the date of giving public notice; and
                                                                                                                                            1. prepare, as soon as is reasonably practicable after the closing date for submissions, a final report to the Minister that contains the matters set out in the draft report and summarises, and makes recommendations on, the submissions received on the draft report.
                                                                                                                                              1. Clause 6 applies to the report referred to in subclause (1)(b)(ii) or (2)(c), as the case may be.

                                                                                                                                              Notes
                                                                                                                                              • Schedule 3 clause 14: substituted, on , by section 58 of the Telecommunications Amendment Act (No 2) 2006 (2006 No 83).