New Zealand

Commerce Commission wants greater budget independence for telco disputes

11:05 am on 8 November 2024

Photo: RNZ / Alexander Robertson

The Commerce Commission wants greater budget independence for the telco disputes service, and is highlighting concerns about the role of the industry body in the scheme.

It its draft report into the performance of Telecommunications Disputes Resolution (TDR), the commission believed it had "improved considerably" since its first three-yearly review in 2021.

Telecommunications commissioner Tristan Gilbertson said a key focus would now be "greater independence of funding" for the industry-funded scheme.

"We also want to see TDR complete its journey to independence from industry by ensuring it has the financial resources to focus on fairly resolving issues for Kiwi telco users, rather than worrying about what the telcos are prepared to fund," Gilbertson said.

The draft report said the "continuing role" of the Telecommunications Forum (the industry body) as a minority shareholder "raises concerns about the independence of the disputes scheme.

"TDR must be able to conduct its work independent of the industry that falls within its jurisdiction and provides its funding. The requirement for unanimity in resolutions related to the budget of TDR and its fee structure effectively confers a power of veto with no mechanism to address this," the commission's report said.

Gilbertson said greater consumer awareness would also be key to further improving the TDR.

"It's important that as many Kiwis as possible know where to go if they run into issues with their provider. MBIE's NZ Consumer Survey shows TDR awareness has increased from 13 percent in 2022 to 20 percent now - but we want to see this higher."

Gilbertson said the "TDR has undergone a transformation over the last few years by improving its operations, boosting consumer awareness, covering more of the problems that matter to consumers and delivering faster resolution times."

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