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No backhaul service intervention needed, says Commerce Commission

13 June 2019

The Commerce Commission has released its findings on backhaul services in New Zealand.

It says it is satisfied that while further regulatory intervention is not necessary at this time, it will continue to monitor backhaul prices and terms.

Telecommunications retailers pay Chorus and the other local fibre companies to handle internet traffic between homes or businesses and suburban exchanges. The retailers also buy ‘backhaul’ from a range of network providers to carry the traffic between the suburban exchanges and the retailers' international gateways and content servers. Mobile operators buy backhaul from cell sites to their gateways and servers.

Telecommunications Commissioner Dr Stephen Gale says the Commission has found that the backhaul market is generally competitive except in some provincial areas where Chorus is the only provider, and some links are more expensive.

Last updated on the 16th September 2019