Telecommunications Act 2001

Commission review of industry dispute resolution schemes

Schedule 3A: Undertakings

You could also call this:

"Promises telecommunications companies make to follow rules and supply services fairly"

Illustration for Telecommunications Act 2001

The Telecommunications Act 2001 has a schedule called Undertakings. You can think of a schedule like a list of extra rules that help explain the main act. The Undertakings schedule is about how telecommunications companies can make promises to follow certain rules. These promises are called undertakings, and they are like contracts between the company and the government. You might be wondering what an undertaking is. It's a written promise from a telecommunications company to supply a service to all access seekers on certain terms and conditions. The company makes this promise to avoid the government regulating them. The government keeps a record of all these promises in a register, which is like a big book that lists all the undertakings. When a company makes an undertaking, it has to follow certain rules. For example, the undertaking must be in writing and signed by the company. It must also say what service the company is promising to supply, and what terms and conditions they will follow. The company can't change the undertaking once it's been made. The government looks at each undertaking to make sure it's fair and follows the rules. If the government accepts an undertaking, it will add it to the register. The register is available for the public to see, so you can look at all the undertakings that have been made. The Undertakings schedule also talks about what happens if a company doesn't follow its undertaking. It says that the government can take action against the company if it breaks its promise. But it also says that the company can ask to change its undertaking if circumstances change. Overall, the Undertakings schedule is an important part of the Telecommunications Act 2001. It helps make sure that telecommunications companies follow the rules and supply services fairly to all access seekers.

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This page was last updated on 8 October 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM128288.

Topics:

Business > Industry rulesMoney and consumer rights > Consumer protection

Schedule 3: Procedure for altering regulated services, or

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

Schedule 3B: Annual telecommunications development levy, or

"A yearly fee to help develop New Zealand's telecommunications"

3AUndertakings Empowered by s 68A

1Interpretation

In this schedule, unless the context otherwise requires,—
final report means the report that—
1. is prepared in accordance with clause 4 of Schedule 3 or, as the case may be, clause 11 of that schedule; and
2. includes the Commission's recommendation on—
  1. a proposed regulatory change:
  2. as the case may be, an undertaking
proposed addition has the meaning set out in clause 8(1)(b) of Schedule 3
proposed alteration has the meaning set out in clause 1(1) of Schedule 3
proposed omission has the meaning set out in clause 8(1)(a) of Schedule 3
proposed regulatory change means—
1. a proposed alteration; or
2. as the case may be,—
  1. a proposed omission:
  2. a proposed addition
register means the register of undertakings established and maintained by the Commission under clause 10(1)
registered undertaking means an undertaking that is entered in the register
service means the telecommunications service to which either or both of the following relate:
1. a proposed regulatory change:
2. an undertaking
undertaking has the meaning set out in clause 3.

2Purpose of clauses 3 to 16

The purpose of clauses 3 to 16 is to provide, as an alternative to a proposed regulatory change, a mechanism for an access provider to supply a service to all access seekers—
on a voluntary basis that avoids the need for regulation; and
on terms and conditions agreed between the access provider and the Commission.

3Commission may accept undertaking

While the Commission is considering a proposed regulatory change, the Commission may accept an offer from an access provider to supply a service to all access seekers on the terms and conditions of a written undertaking (an undertaking).
If the Commission accepts an undertaking, a final report may include—
a recommendation by the Commission that the Minister should accept the undertaking; and
any of the following recommendations by the Commission:
1. that the proposed regulatory change should be made:
2. that the proposed regulatory change should not be made:
3. that the Minister's decision on the proposed regulatory change should be deferred.

However, an undertaking that the Commission accepts under subclause (2) has no legal effect unless it is registered under clause 6.
For the purposes of subclause (2), clauses 4, 6, and 7 of Schedule 3 or, as the case may be, clauses 11, 13, and 14 of that schedule apply with any necessary modifications.

4Criteria for undertaking

The Commission must not make a recommendation under clause 3(2) unless the Commission is satisfied that the undertaking—
complies with this Act and any regulations made under this Act; and
complies with the standard access principles set out in clause 5 of Schedule 1 and any limits on those standard access principles set out in clause 6 of that schedule.

5Requirements for undertaking

An undertaking must—
be signed or executed by the relevant access provider; and
specify the terms and conditions of the supply of the service; and
specify the date by which those terms or conditions must be complied with by the relevant access provider; and
specify a mechanism for the resolution by the Commission or a suitably qualified and experienced independent person of any issues or disputes that arise after the undertaking is registered; and
provide for any other prescribed matters.

An undertaking must not be amended.

Notes

Schedule 3A clause 5(2): amended, on 13 November 2018, by section 16(1) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).

6Commission must register undertaking if Minister accepts Commission's recommendation

If the Minister accepts the Commission's recommendation that the Minister should accept an undertaking, the Commission must—
enter in the register—
1. the name of the relevant access provider; and
2. any other information specified in clause 12; and
give written notice of the registration to the relevant access provider; and
give public notice of the registration.

7Expiry of registration of undertaking

The registration of an undertaking is effective for—
a period of 5 years from the date of registration; and
any further period that the Commission and the relevant access provider may agree.

The Commission must consult with every person who has a material interest in the matter before agreeing to a further period under subclause (1)(b).
Despite subclause (1), the Commission may make a recommendation in the final report to the Minister that, having regard to the matters specified in subclause (4), the registration of an undertaking should expire earlier than the 5-year period referred to in subclause (1).
The matters are—
the reasonable needs of potential access seekers; and
the commercial lifetime of the service delivery technology concerned; and
any other factors that the Commission thinks relevant.

Despite anything in this clause, the registration of an undertaking expires on the date that the proposed regulatory change is made.
This clause does not require the Commission to commence an investigation into a proposed regulatory change on the expiry of the registration of an undertaking.

8Effect of registration of undertaking

A registered undertaking provides a basis for preparing and approving a telecommunications access code in relation to the supply of the service even though the access provider would not otherwise be subject to that code.
A registered undertaking—
does not prevent the Commission from—
1. commencing or continuing an investigation into a proposed regulatory change; or
2. making a recommendation to the Minister that a proposed regulatory change should be made; and
does not prevent the Minister from—
1. requesting that the Commission commence or continue an investigation into a proposed regulatory change; or
2. accepting the Commission's recommendation that a proposed regulatory change should be made.

9Part 2 of Commerce Act 1986 does not apply to registered undertaking

Part 2 of the Commerce Act 1986 does not apply in respect of—
a registered undertaking; and
any matter necessary for giving effect to a registered undertaking.

10Register of undertakings

For the purposes of this schedule, the Commission must establish and maintain a register of undertakings.
The register may be—
an electronic register; or
kept in any other manner that the Commission thinks fit.

11Other duties and powers of Commission in relation to register

The Commission must ensure that the register is open for public inspection, at all reasonable times,—
at the head office of the Commission and at any other place that the Commission determines to be necessary or appropriate:
on the Commission's website in an electronic form that is publicly accessible.

The Commission may, at any time, make any amendments to the register that are necessary to—
reflect any changes in the information specified in clause 13; or
correct a mistake caused by any error or omission on the part of the Commission.

12Contents of register

The register must, in relation to every registered undertaking, contain all of the following:
particulars of the relevant access provider:
the date of registration of the undertaking:
the terms and conditions of the supply of the service:
particulars of, or a description of the class of, the access seekers to whom the service is to be supplied:
any other particulars that may be prescribed.

13Process for making undertaking

An access provider who wishes to make an undertaking must apply to the Commission in accordance with clause 14.
The Commission must deal with the application—
in accordance with clauses 15(2) and 16:
in the prescribed manner, if any.

An access provider must not make more than 1 application in relation to a proposed regulatory change.

Notes

Schedule 3A clause 13(3): inserted, on 13 November 2018, by section 16(2) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).

14Requirements for application

An application under clause 13 must—
be in writing; and
be given in the prescribed manner, if any; and
contain the prescribed information, if any; and
be accompanied by the prescribed fee, if any.

15Timing of application

An application under clause 13—
may be made after the date on which public notice is given under clause 1(3) of Schedule 3; but
must be made not later than 40 working days after the date on which the Commission commences an investigation into the proposed regulatory change under clause 1 of Schedule 3.

The Commission must not consider a late application.

16Commission must invite submissions

After receiving an application under clause 13, the Commission must—
give public notice of the application; and
invite persons who have a material interest in the proposed regulatory change to make written submissions on the application by the closing date specified in the public notice; and
consider those submissions.

The closing date for submissions must not be earlier than 10 working days after the date on which public notice is given under subclause (1)(a).
Repealed

Notes

Schedule 3A clause 16(3): repealed, on 13 November 2018, by section 16(3) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).