Impact of government policy on rural telecommunications market structure

Sam Brown made this Official Information request to Ministry of Business, Innovation & Employment

Currently waiting for a response from Ministry of Business, Innovation & Employment, they must respond promptly and normally no later than (details and exceptions).

From: Sam Brown

Dear Ministry of Business, Innovation & Employment,

Under the Official Information Act 1982, I request:

1. Any analysis of how government funding decisions, policy settings, or regulatory frameworks have influenced competitive dynamics in rural telecommunications markets, including whether these impacts were assessed during policy development.

2. Any advice to Ministers regarding unintended consequences of policy settings that may accelerate market concentration or elimination of terrestrial connectivity providers from rural areas.

3. Any assessment of risks associated with rural telecommunications transitioning from multiple competing providers using diverse technologies to effective single-provider dominance, including:

* Consumer protection implications if the dominant provider later raises prices significantly
* Infrastructure resilience concerns if alternative networks are economically abandoned
* Whether market structure changes align with government objectives for competition, consumer choice, and essential service resilience

4. Any analysis of whether government has considered "what happens next" scenarios if current market trajectory results in:
* Elimination of terrestrial alternatives from rural markets
* Effective monopoly by foreign-controlled satellite provider/s
* Subsequent price increases once competitive constraint is removed
* Consumer harm that cannot be remedied by market re-entry due to infrastructure barriers

5. Any advice on whether policy settings should include mechanisms to maintain infrastructure diversity, prevent irreversible market concentration, or protect against elimination of competition in essential services markets.

6. Any assessment of whether decisions about rural connectivity funding have adequately considered long-term market structure implications versus short-term problem-solving convenience.

Context: Government policy and funding decisions influence market structure. I am seeking to understand whether long-term implications of potential market concentration have been assessed, or whether policy is inadvertently creating conditions for monopoly formation without adequate consideration of subsequent consumer protection and resilience concerns.

Yours faithfully,

Sam Brown

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From: Ministerials
Ministry of Business, Innovation & Employment


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Kia ora Sam Brown,
 
On behalf of the Ministry of Business, Innovation and Employment I
acknowledge your email of 6/01/2026 requesting, under the Official
Information Act 1982, the following:
 
Under the Official Information Act 1982, I request:

1. Any analysis of how government funding decisions, policy settings, or
regulatory frameworks have influenced competitive dynamics in rural
telecommunications markets, including whether these impacts were assessed
during policy development.

2. Any advice to Ministers regarding unintended consequences of policy
settings that may accelerate market concentration or elimination of
terrestrial connectivity providers from rural areas.

3. Any assessment of risks associated with rural telecommunications
transitioning from multiple competing providers using diverse technologies
to effective single-provider dominance, including:

* Consumer protection implications if the dominant provider later raises
prices significantly
   * Infrastructure resilience concerns if alternative networks are
economically abandoned
   * Whether market structure changes align with government objectives for
competition, consumer choice, and essential service resilience

4. Any analysis of whether government has considered 'what happens next'
scenarios if current market trajectory results in:
   * Elimination of terrestrial alternatives from rural markets
   * Effective monopoly by foreign-controlled satellite provider/s
   * Subsequent price increases once competitive constraint is removed
   * Consumer harm that cannot be remedied by market re-entry due to
infrastructure barriers

5. Any advice on whether policy settings should include mechanisms to
maintain infrastructure diversity, prevent irreversible market
concentration, or protect against elimination of competition in essential
services markets.

6. Any assessment of whether decisions about rural connectivity funding
have adequately considered long-term market structure implications versus
short-term problem-solving convenience.

Context: Government policy and funding decisions influence market
structure. I am seeking to understand whether long-term implications of
potential market concentration have been assessed, or whether policy is
inadvertently creating conditions for monopoly formation without adequate
consideration of subsequent consumer protection and resilience concerns.
 
We will endeavour to respond to your request as soon as possible, and no
later than 13/02/2026, being 20 working days after the day your request
was received. If we are unable to respond to your request by then, we will
notify you of an extension of that timeframe. Please note that the days
from 25 December 2025 to 15 January 2026 (inclusive) are defined as
non-working days in the Act and are not counted in the calculation for the
response due date. This will affect the time period for responding to your
request. If you have any enquiries regarding your request feel free to
contact us via email to [1][MBIE request email].
 
Nāku noa, nā
Ministerial Services
Strategy and Assurance
Ministry of Business, Innovation & Employment
15 Stout Street, Wellington 6011 |  P O Box 1473 Wellington 6140

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From: BRM Ministerial Services
Ministry of Business, Innovation & Employment


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Kia ora,

 

On 6 January 2026, you requested under the Official Information Act 1982
(the Act) the following:

 

1. Any analysis of how government funding decisions, policy settings, or
regulatory frameworks have influenced competitive dynamics in rural
telecommunications markets, including whether these impacts were assessed
during policy development.

2. Any advice to Ministers regarding unintended consequences of policy
settings that may accelerate market concentration or elimination of
terrestrial connectivity providers from rural areas.

3. Any assessment of risks associated with rural telecommunications
transitioning from multiple competing providers using diverse technologies
to effective single-provider dominance, including:

* Consumer protection implications if the dominant provider later raises
prices significantly
   * Infrastructure resilience concerns if alternative networks are
economically abandoned
   * Whether market structure changes align with government objectives for
competition, consumer choice, and essential service resilience

4. Any analysis of whether government has considered 'what happens next'
scenarios if current market trajectory results in:
   * Elimination of terrestrial alternatives from rural markets
   * Effective monopoly by foreign-controlled satellite provider/s
   * Subsequent price increases once competitive constraint is removed
   * Consumer harm that cannot be remedied by market re-entry due to
infrastructure barriers

5. Any advice on whether policy settings should include mechanisms to
maintain infrastructure diversity, prevent irreversible market
concentration, or protect against elimination of competition in essential
services markets.

6. Any assessment of whether decisions about rural connectivity funding
have adequately considered long-term market structure implications versus
short-term problem-solving convenience.

 

The lack of a time period could result in the request being refused under
section 18(f) of the Act as the information requested cannot be made
available without substantial collation or research. If you would like to
amend your request to include a time period, such as 27 November 2023 to 6
January 2026, please let us know by 29 January 2026.

 

Ngā mihi

 

Ministerial Services

Office of the Deputy Secretary | Building, Resources and Markets

Ministry of Business, Innovation and Employment

[1]Ministry of Business, Innovation and Employment logo for email
signatures.

 

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From: Sam Brown

Kia ora,

Thank you for seeking clarification on the timeframe.

Please provide information from 1 January 2022 to present.

This 4-year period captures:
- The emergence of LEO satellite services (Starlink) in the NZ market
- Policy development and funding decisions during the current parliamentary term
- Market structure changes affecting rural telecommunications competition
- Any analysis of unintended consequences or market concentration risks undertaken as satellite services became dominant in rural areas

If a 4-year timeframe would still result in substantial collation, I'm happy to accept your suggested period of 27 November 2023 to 6 January 2026, though I note this may not capture earlier policy analysis that informed current settings or decisions made during the previous government.

Please confirm which timeframe you'll proceed with.

Ngā mihi,

Sam Brown

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From: BRM Ministerial Services
Ministry of Business, Innovation & Employment

Kia ora,

Thank you for amending your request to be a request for information, as detailed below, between 1 January 2022 and 6 January 2026.

Please note, any clarification or amendment of a request is considered to be a new request for the purpose of calculating the maximum statutory timeframe for response as per section 15(1AA) of the OIA. To that end, the due date for your request is now 20 February 2026.

If you wish to discuss any aspect of your request or this response, or if you require any further assistance, please contact [email address].

You have the right to seek an investigation and review by the Ombudsman of this decision. Information about how to make a complaint is available at http://www.ombudsman.parliament.nz/ or freephone 0800 802 602.

Ngā mihi

Ministerial Services

Office of the Deputy Secretary | Building, Resources and Markets

Ministry of Business, Innovation and Employment

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