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New Zealand law explained for everyone

Telecommunications Act 2001

Structural separation of Telecom - Line of business restrictions

69O: No participation in supply of retail services

You could also call this:

"Big telecom companies can't sell services to people if most of those services are for personal use"

Illustration for Telecommunications Act 2001

If you are Chorus or a related party of Chorus, you must not supply a telecommunications service to someone if 25% or more of the services you supply to them in a year are for their own use. You also cannot supply services if 25% or more of the services are for the use of people related to them. You can check sections 156L(3) and 156M to see the maximum penalty for breaking this rule, which is $10 million and $500,000 per day.

If you break this rule, you will face a big penalty, so it is good to know what the rules are. You can look at the rules to understand what you can and cannot do when supplying telecommunications services. The rules are in place to make sure everyone follows the law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4187645.

Topics:
Business > Industry rulesMoney and consumer rights > Consumer protection
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69N: Minister may grant exemption from application of subpart, or

"The Minister can choose to exempt some rules for certain sharing arrangements in telecommunications."

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69P: Register of non-retail users, or

"Who Chorus is allowed to supply services to without breaking the rules"

Part 2AStructural separation of Telecom
Line of business restrictions

69ONo participation in supply of retail services

  1. Chorus, or any related party of Chorus, must not participate in the supply of a telecommunications service to a person (A) if 25% or more of the services supplied, or to be supplied, by Chorus to A in any year are or will be supplied—

  2. for A’s own use or consumption; or
    1. for the use or consumption of persons who are related parties of A.

      1. See sections 156L(3) and 156M for the maximum penalty of $10 million (and $500,000 per day) for breach of this section.

      Notes
      • Section 69O: substituted, on (being the date of separation day, and an Order in Council (SR 2011/302) having been made under section 36), by section 51 of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).