Regulator impatient for better debt practices

In this edition:


ComCom orders immediate debt code action

The Commerce Commission is no longer content to wait for industry self-regulation on consumer debt and wants both a revised code from the TCF and immediate operational changes from retail service providers. This is part of the Commerce Commission's work on retail service quality.

A letter from Telecommunications Commissioner Tristan Gilbertson instructs (TCF) to issue an updated Disconnection Code by the end of 2026. He requires retail service providers to improve their debt practices in parallel, without waiting for the new code.

In the letter Gilbertson says current debt practices can contribute to stress, disengagement, delays in seeking help, and increased risk of service restriction or disconnection.

The letter follows the release of the Commerce Commission’s Improving Retail Service Quality: Debt Practices Report.

High level of financial arrears

Around ten percent of telecommunications consumers are likely to be experiencing financial difficulty at any given time. The level of arrears is higher than in other utility sectors.

In the letter Gilbertson writes:

In the second half of last year, 204,200 households and 16,700 SMEs experienced debt relating to telecommunications services.
...For those affected, the consequences can be significant, including having to reduce spending on essentials such as food or clothing to maintain telecommunications services.

The report flags problems for consumers in bundles combining telecommunications with other services such as power, who may have limited ability to prioritise essential services or allocate payments across products.

The ongoing median debt for consumers facing hardship is over $400 and many consumers who have been through the process say they were dissatisfied with how their retail service provider handled debt.

Consumers also find it hard to identify, understand or access support options when facing financial difficulty.

Engagement often requires interaction with multiple teams, channels and processes. Inconsistent debt and hardship management creates uncertainty and leaves consumers not knowing what to expect.

Late payment fees are applied inconsistently. Disconnection policies and consumer safeguards also vary significantly between providers.

Six areas for action

The Commerce Commission says service providers should take action in six areas. These align with areas where the TCF needs to update its code:

Gilbertson says many of the improvements can be implemented through operational changes without waiting for the revised code. He expects providers to have largely completed those improvements by the end of 2026.

The Commission says it will monitor progress and consider further regulatory intervention if the telecommunications industry fails to deliver meaningful improvements.

Related:

TCF echos ompulsory dispute resolution membership call
The TCF echos Telecommunications Commissioner Tristan Gilbertson’s compulsory dispute resolution membership call. Chorus revenue capped at $3.3b. Schools network to use NCSC, CertNZ security services

New Zealand domains hit record high

New Zealand's official domain registry recorded 766,790 active .nz domains by end of April 2026, a new high.

Of these, 544,914 use the .co.nz second-level domain.

The numbers represent a new high for local website registrations. InternetNZ attributes the growth largely to demand for shorter .nz addresses.

New Zealand also boasts a high rate of domain renewals, running at roughly 85 percent. This is significantly better than in international markets like Australia and the United Kingdom.



New Zealand launches cable surveillance and warning system

New Zealand-made cable protection technology is being exported to Europe after a successful local trial. Kordia and Starboard Maritime Intelligence developed the system, which warns when shipping activity threatens submarine cables or other underwater infrastructure.

Fishing nets and dragging anchors pose a greater day-to-day risk to underwater cables than hostile action, despite the latter receiving more attention.

The system underpins a new National Surveillance and Warning Capability based at the Maritime Operations Centre in Wellington. It was launched by Associate Transport Minister James Meager.

When the technology detects potential vessel damage to a cable, it alerts staff at the operations centre. Staff then contact the vessel, explain the risks and outline its legal obligations within cable protection zones.

Last year the technology was tested in the Hauraki Gulf and Muriwai Cable areas. Since then the two companies have won contracts to export the technology to Europe.

Meager says asset owners fund the surveillance, at no cost to taxpayers.


NCSC reports first severe cyber attacks since 2022

New Zealand’s National Cyber Security Centre says it responded to three C2 category or ‘highly significant’ incidents in the first quarter of 2026. These are attacks affecting sensitive data or capable of disrupting essential services in nationally significant organisations.

The NCSC says these were the first attacks of this severity since the 2021-22 financial year.

Otherwise the NCSC reports a slight increase in the number of incidents from the previous quarter. The direct financial loss jumped 76 percent during the quarter to $5.6 million; however, this is below the average loss over the last two years.



In other news...


Tuanz calls for digital capability investment

Tuanz says New Zealand must address the widening skills gap to maintain and expand technology exports. Specifically it wants ‘urgent, coordinated investment in home-grown digital capability to ensure Aotearoa can capture the significant economic opportunity presented by artificial intelligence and emerging technologies’.

The Education to Employment policy statement is the first of five papers Tuanz plans to publish in the coming weeks. It emphasises the need to develop talent at home rather than depending on immigration.

Tuanz wants to see:



This time last year the Infrastructure Commission made more fibre a priority

Te Waihanga, the Infrastructure Commission, marked a change in government thinking when it put extending the fibre network into rural New Zealand on its priority list.

Five years ago Ericsson charted the rise of FWA
The 2021 Ericsson Mobile report noted the rapid growth of 5G mobile and the popularity of fixed wireless access in countries like New Zealand with ‘high fibre penetration’.


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