Telecommunications and Other Matters Amendment Bill

Telecommunications and Other Matters Amendment Bill The Parliament of New Zealand enacts as follows: 1 Title This Act is the Telecommunications and Other Matters Amendment Act 2025 . 2 Commencement This Act comes into force on the day after Royal assent. However,— a sections 9 and 14 (which relate to levies) come into force on 1 July 2026 ; and b Part 3 (which amends the Telecommunications (Interception Capability and Security) Act 2013) comes into force 6 months after Royal assent. 3 Principal Act This Part amends the Radiocommunications Act 1989. 4 New section 2A inserted (Transitional, savings, and related provisions) After section 2, insert: 2A Transitional, savings, and related provisions The transitional, savings, and related provisions set out in Schedule 1AA have effect according to their terms. 5 New Part 7A inserted After section 65, insert: 7A Enforcement of certain breaches of telecommunications legislation 1 Preliminary provisions 65A Purpose of this Part The purpose of this Part is to enable the Secretary to enforce breaches by providers of telecommunications services of certain provisions of the Telecommunications Act 2001 and the Telecommunications (Interception Capability and Security) Act 2013. 65B Application of this Part to licences and management rights for which manager is the Crown 1 This Part applies to— a radio licences; and b spectrum licences that relate to a frequency, or a range of frequencies, for which the manager is the Crown. 2 However, this Part does not apply to any general user radio licence or general user spectrum licence. 3 Subpart 3 also applies to management rights for which the manager is the Crown to the extent that they are referred to in Schedule 1AB . 65C Application of this Part to service providers This Part applies if— a the Secretary considers, on reasonable grounds, that a an alleged non-compliant service provider— i has been served with an enforcement notice under section 90 of the Telecommunications (Interception Capability and Security) Act 2013 in respect of any serious alleged non-compliance; or ii has breached a provision of the Telecommunications Act 2001 that is listed in Schedule 4 of that Act; and b the alleged non-compliant service provider has any of the following interests in a licence to which this Part applies (a relevant licence ): i the person is the holder of a radio licence: ii the person is a rightholder of a spectrum licence: iii the person relies on transmits or receives radio waves, to provide telecommunications services to persons in New Zealand, on the frequency band specified in a radio licence or spectrum licence held by another person to provide telecommunications services to persons in New Zealand . 65D Interpretation of this Part In this Part, unless the context otherwise requires,— alleged non-compliance means the alleged non-compliance referred to in section 65C(a) alleged non-compliant provider means a person referred to in section 65C(a) that is any of the following: a a network operator, or a service provider, within the meaning of section 3(1) of the Telecommunications (Interception Capability and Security) Act 2013: b a service provider within the meaning of section 5 of the Telecommunications Act 2001 end-user has the same meaning as in section 5 of the Telecommunications Act 2001 intermediary ,— a in relation to the use of a radio licence to which this Part applies, means a person who, directly or indirectly, derives rights under the licence from a holder of the licence and who provides some or all of the rights to a an alleged non-compliant service provider or to another intermediary: b in relation to the use of a spectrum licence to which this Part applies, means a person who, directly or indirectly, derives rights under the licence from a rightholder and who provides some or all of the rights to a an alleged non-compliant service provider or to another intermediary non-compliance means the alleged non-compliance referred to in section 65C(a) non-compliant service provider means a person referred to in section 65C(a) that is any of the following: a a network operator, or a service provider, within the meaning of section 3(1) of the Telecommunications (Interception Capability and Security) Act 2013: b a service provider within the meaning of section 5 of the Telecommunications Act 2001 surveillance agency has the same meaning as in section 3(1) of the Telecommunications (Interception Capability and Security) Act 2013 telecommunications service has the same meaning as in section 5 of the Telecommunications Act 2001. 2 Revocation and restriction of licences for alleged non-compliance with other Acts 65E Other regulators may request Secretary to exercise power under this Part 1 Any surveillance agency may request the Secretary to exercise the Secretary’s powers under this Part by filing with the Secretary a description of the alleged non-compliance, including a copy of the enforcement notice served under section 90 of the Telecommunications (Interception Capability and Security) Act 2013. — a a description of the non-compliance, including a copy of the enforcement notice served under section 90 of the Telecommunications (Interception Capability and Security) Act 2013; and b an assurance that the surveillance agency or agencies have explored any other enforcement mechanisms for addressing the non-compliance and identified practical difficulties that mean enforcement under this Part is preferable. 1A However, the surveillance agency must,— a before making a request, have— i explored any other enforcement mechanisms for addressing the alleged non-compliance; and ii identified practical difficulties with those mechanisms; and iii decided that enforcement under this Part is preferable; and b supply the Secretary with evidence of the other enforcement mechanisms that were explored and of the practical difficulties identified. 2 The Commerce Commission may request the Secretary to exercise the Secretary’s powers under this Part by filing with the Secretary a description of the alleged non-compliance with the provision of the Telecommunications Act 2001 that is listed in Schedule 4 of that Act. — a a description of the non-compliance with the provision of the Telecommunications Act 2001 that is listed in Schedule 4 of that Act; and b an assurance that the Commerce Commission has explored any other enforcement mechanisms for addressing the non-compliance and identified practical difficulties that mean enforcement under this Part is preferable. 3 However, the Commerce Commission must,— a before making a request, have— i explored any other enforcement mechanisms for addressing the alleged non-compliance; and ii identified practical difficulties with those mechanisms; and iii decided that enforcement under this Part is preferable; and b supply the Secretary with evidence of the other enforcement mechanisms that were explored and of the practical difficulties identified. 4 However, for the purposes of this section, practical difficulties do not include the standard costs of proceedings in New Zealand or administrative convenience. 65F Power of Secretary to revoke or restrict licences for alleged non-compliance 1 If this Part applies to a relevant licence,— a the Secretary may revoke the licence, if the alleged non-compliant service provider is the holder, or the rightholder, of the relevant licence: b if the alleged non-compliant service provider relies, to provide telecommunications services to persons in New Zealand, on transmits or receives radio waves, to provide telecommunications services to persons in New Zealand, on the frequency band specified in a radio licence or spectrum licence of which another person ( person A ) is the holder or a rightholder, the Secretary may permanently restrict the use of those rights under the licence by the alleged non-compliant service provider by, for example,— i making the licence subject to a term, condition, or restriction that prohibits the use of those rights under the licence by the alleged non-compliant service provider; or ii requiring person A (or any intermediary who, directly or indirectly, derives rights under the licence from person A) to permanently restrict the use of those rights under the licence by the alleged non-compliant service provider. 2 The Secretary may revoke the licence held by person A if the Secretary is satisfied that all or any of the rights under the relevant licence have been used in contravention of a restriction imposed under subsection (1)(b) . 3 However, the Secretary may not exercise a power under this section unless the Secretary— a considers it desirable to do so to address the alleged non-compliance; and b has provided the alleged non-compliant provider and the licence holder (as the case may be) with written notice that includes— i a statement that the Secretary is considering exercising their power under this section; and ii a description of the alleged non-compliance; and iii how and why the power may be exercised; and iv an opportunity to provide feedback to the Secretary. 4 References in subsection (3) to the alleged non-compliance must be read, if the Secretary is exercising the power in subsection (2) , as references to the failure by person A or the intermediary to comply with a requirement of the Secretary under subsection (1)(b) . 65G Considerations before exercising power in section 65F 1 Before exercising a power in section 65F , the Secretary must consider the following: a the nature and extent of the alleged non-compliance: b the nature and extent of any loss, damage, or other harm caused by the alleged non-compliance, and any steps taken by the alleged non-compliant service provider to avoid or mitigate that loss, damage, or other harm: c the extent to which the surveillance agency or agencies, or the Commerce Commission (as the case may be), has explored any other enforcement mechanisms for addressing the alleged non-compliance and has identified practical difficulties that mean enforcement under this Part is preferable: d the effect of the proposed exercise of the power on all of the following persons who are likely to be affected: i the alleged non-compliant service provider: ii any person A or any intermediary: iii the alleged non-compliant service provider’s customers in New Zealand and other end-users in New Zealand: iv any mortgagee . : e if the alleged non-compliant provider is outside New Zealand, the extent (if any) to which the alleged non-compliance results from compliance by the alleged non-compliant provider with the laws of a jurisdiction outside New Zealand to which the provider is subject. 2 The Secretary may consider the matters in subsection (1) by relying solely on summary information provided by the surveillance agency or the Commerce Commission and any feedback provided to the Secretary under subsection (3) and section 65F(3)(b) . 3 The Secretary may seek feedback from other persons who the Secretary considers are likely to be affected and consider other information that the Secretary considers relevant. 3 Power to take alleged non-compliance into account in certain decision-making relating to licences or management rights for which manager is the Crown 65H Power to take alleged non-compliance into account in certain decision-making relating to licences or management rights for which manager is the Crown 1 This subpart applies if the Secretary or any other person is making a decision specified in Schedule 1AB about any of the following: a a radio licence to which this Part applies: b a spectrum licence that relates to a frequency, or a range of frequencies, for which the manager is the Crown and to which this Part applies: c management rights for which the manager is the Crown to the extent that they are referred to in Schedule 1AB . 2 The Secretary or other person may take any relevant alleged non-compliance into account to the extent that it resulted in the Secretary exercising a power under section 65F . 4 Power to share information and documents 65I Sharing of information and documents 1 A surveillance agency may provide to the Secretary any information, or a copy of any document, that the agency— a holds in relation to the performance or exercise of its functions, powers, or duties under the Telecommunications (Interception Capability and Security) Act 2013; and b considers may assist the Secretary in the performance or exercise of the Secretary’s functions, powers, or duties under this Part. 2 A surveillance agency may provide information, or a copy of a document, under this section only if the agency is satisfied that— a doing so will not substantially affect the performance of its other functions; and b appropriate protections are or will be in place for the purpose of maintaining the confidentiality of anything provided (in particular, information that is personal information within the meaning of the Privacy Act 2020). 3 The Secretary may use the information, or a copy of the document, provided by the surveillance agency in the Secretary’s performance or exercise of the Secretary’s functions, powers, or duties under this Part. 4 This section applies despite anything to the contrary in any contract, deed, or document. 5 Subsections (1) to (3) do not authorise personal information to be disclosed in circumstances beyond those in information privacy principle 11 set out in section 22 of the Privacy Act 2020. 1986 No 5 s 99AA 6 New Schedule 1AA inserted Insert the Schedule 1AA set out in Schedule 1 of this Act as the first schedule to appear after the last section of the principal Act. 7 New Schedule 1AB inserted After Schedule 1AA, insert the Schedule 1AB set out in Schedule 2 of this Act. 8 Principal Act This Part amends the Telecommunications Act 2001. 9 Section 5 amended (Interpretation) In section 5, definition of liable person , replace in New Zealand with to persons in New Zealand . 10 Section 15 amended (Application of Commerce Act 1986 and Crown Entities Act 2004) After section 15(1)(h), insert: haa section 99AA (sharing of information and documents with public service agencies, statutory entities, Reserve Bank, and New Zealand Police): 11 Section 18 amended (Purpose) After section 18(3), insert: 3A References in subsections (1), (2), and (2A) to end-users of telecommunications services within New Zealand require the end-users to be in New Zealand, but not necessarily the telecommunications services. In section 18(4), replace Subsection (3) is with Subsections (3) and (3A) are . 12 New section 18A inserted (Territorial scope of Part 2) After section 18, insert: 18A Territorial scope of Part 2 This Part and Schedule 1, and any secondary legislation made for the purpose of this Part, apply— a to a person who is an access seeker or an access provider regardless of whether the person is in or outside New Zealand; and b to a service that is a designated service or a specified service regardless of whether the service is operated (wholly or partially) by means of infrastructure located outside New Zealand, provided the infrastructure is used, or intended to be used, to provide services to persons in New Zealand. Examples An overseas person may be an access seeker or an access provider. A service provided to persons in New Zealand that involves overseas infrastructure may be a designated service or a specified service. 13 Section 80 amended (Interpretation) In section 80, insert as subsection (2): 2 See also section 101A(2) if this subpart has extra-territorial effect. 14 New section 101A inserted (Territorial scope of Part 3) After section 101, insert: 101A Territorial scope of Part 3 1 This Part and any secondary legislation made for the purpose of this Part apply to a person ( person A ) who provides a telecommunications service to persons in New Zealand— a regardless of whether person A is in or outside New Zealand; and b regardless of whether the service is operated (wholly or partially) by means of infrastructure located outside New Zealand. 2 However, only the revenue derived by person A from persons in New Zealand counts as qualified revenue or as telecommunications revenue for the purposes of the telecommunications development levy or the levy referred to in section 11 (the levies ). Examples An overseas person may be liable to pay a levy if it meets the thresholds for the provisions that apply to that levy (for example, see the Telecommunications Operators (Commerce Commission Costs) Levy Regulations 2019). An overseas person must comply with requests from the Commerce Commission for information needed to determine allocation of the levies. 14A New section 156CAA inserted (Enforcement of certain breaches via Radiocommunications Act 1989) After section 156C, insert: 156CAA Enforcement of certain breaches via Radiocommunications Act 1989 See Part 7A of the Radiocommunications Act 1989 for enforcement of certain breaches referred to in Schedule 4 . 15 Section 157 amended (Regulations) After section 157(1), insert: 1A Regulations made under this section subsection (1)(ch) (which relate to emergency call services) may provide that the requirements set by the regulations apply to a person— a regardless of whether the person is in or outside New Zealand; and b regardless of whether the service is operated (wholly or partially) by means of infrastructure located outside New Zealand. 16 New section 158 inserted (Enforcement of certain breaches via Radiocommunications Act 1989) After section 157, insert: 158 Enforcement of certain breaches via Radiocommunications Act 1989 See Part 7A of the Radiocommunications Act 1989 for enforcement of certain breaches referred to in Schedule 4 . 17 New section 250 and cross-heading inserted After section 249, insert: Miscellaneous 250 Territorial scope of Part 7 This Part and any secondary legislation made for the purpose of this Part apply to a provider of telecommunication services to consumers in New Zealand, regardless of whether the provider is in or outside New Zealand. Example Relevant codes set by the Commerce Commission may apply to overseas service providers. 18 New Schedule 4 inserted After Schedule 3C, insert the Schedule 4 set out in Schedule 3 of this Act. 19 Principal Act This Part amends the Telecommunications (Interception Capability and Security) Act 2013. 20 Section 3 amended (Interpretation) In section 3(1), replace the definition of network operator with: network operator means a person who, from in or outside New Zealand,— a owns, controls, or operates a public telecommunications network that is available to persons in New Zealand; or b supplies (whether by wholesale or retail) another person with the capability to provide a telecommunications service to persons in New Zealand In section 3(1), definition of outsourcing arrangement , replace within New Zealand with in or outside New Zealand . In section 3(1), definition of service provider , paragraph (a), replace within with in . 21 New section 4A inserted (Territorial scope) After section 4, insert: 4A Territorial scope This Act applies— a to a service provider that provides telecommunications services to end-users in New Zealand regardless of whether the service provider is in or outside New Zealand; and b to a network operator regardless of whether it is in or outside New Zealand and whether any of the infrastructure that it relies on is located wholly or partially outside New Zealand. 22 Section 9 amended (Network operators must ensure public telecommunications networks and telecommunications services have full interception capability) In section 9(1), before in New Zealand , insert to persons . 23 Section 13 amended (Network operators with fewer than 4 000 customers) In section 13(2)(b), before in New Zealand , insert to persons . 23A Section 24 amended (Duty to assist) Replace section 24(8) with: 8 See section 121A if the common law defence of foreign state compulsion applies. 24 Section 90 amended (Enforcement notice may be issued for serious non-compliance) After section 90(2)(b), insert: c may take the non-compliance into account, and seek enforcement action, under Part 7A of the Radiocommunications Act 1989. 25 New section 121A inserted (Common law defence of foreign state compulsion not affected) After section 121, insert: 121A Common law defence of foreign state compulsion not affected Nothing in this Act affects the application of the common law defence of foreign state compulsion to a network operator or service provider outside New Zealand. 1 New Schedule 1AA inserted into Radiocommunications Act 1989 1AA s 2A Transitional, savings, and related provisions 1 Provision relating to Telecommunications and Other Matters Amendment Act 2025 1 Part 7A does not apply to past alleged non-compliance Part 7A does not apply to alleged non-compliance that occurred before the commencement of that Part. 1AA Transitional, savings, and related provisions 2 New Schedule 1AB inserted into Radiocommunications Act 1989 1AB s 65H Decisions relating to licences in which certain alleged non-compliance may be taken into account under subpart 3 of Part 7A 1 Decisions relating to licences in which certain alleged non-compliance may be taken into account under subpart 3 of Part 7A 1 The relevant decisions for the purposes of section 65H are all of the following: a a decision to grant a radio licence (regulation 8): b a decision to grant an exemption from the requirement for a radio licence (regulation 10): c a decision to consent to a radio licence holder entering into agreements with other persons who wish to communicate on the frequency (or frequencies or frequency band or frequency bands) specified in the licence under regulation 13, if such consent is required: d a decision to consent to the transfer of a radio licence under regulation 15G, if such consent is required: e a decision to transfer a management right for which the manager is the Crown under section 42 to a private entity to create a private management right: f a decision to grant a spectrum licence for a management right for which the manager is the Crown (section 48): g a decision to consent to a spectrum licence holder for a management right for which the manager is the Crown entering into agreements with persons wishing to transmit on the frequency specified in the spectrum licence under section 55, if such consent is required: h a decision to consent to the transfer of a spectrum licence for a management right for which the manager is the Crown (section 56(2)), provided the spectrum licence provides that the spectrum licence cannot be transferred without the consent of the manager. 2 In this clause, unless the context otherwise requires,— consent includes an approval or other form of authorisation regulation means a provision of the Radiocommunications Regulations 2001. 1AB Decisions relating to licences in which certain alleged non-compliance may be taken into account under subpart 3 of Part 7A 3 New Schedule 4 inserted into Telecommunications Act 2001 4 s 158 156CAA Provisions of this Act for which alleged non-compliance may result in action under Part 7A of Radiocommunications Act 1989 1 Breaches of telecommunications law to which powers in Part 7A of Radiocommunications Act 1989 apply The provisions of this Act referred to in Part 7A of the Radiocommunications Act 1989 are as follows: Designated services and specified services 1 Section 30S(1)(b) (access provider fails to comply with request from access seeker to supply designated access service or specified service). 2 Section 30T(3) (access provider fails to comply with request from access seeker regarding section 27 determination). 3 Section 45(2) (access provider fails to comply with request from Commerce Commission to calculate price). Telecommunications service obligations 4 Section 10B (provider of telecommunications services fails to supply information to verify revenue) (as inserted by section 4 of the Telecommunications Amendment Act 2025 ). 5 Section 11(1) (liable person fails to pay levy referred to in section 11). 6 Section 82 (liable person fails to produce information on qualified revenue). 7 Section 83 (liable person fails to produce information for purposes of liability allocation determination). 8 Section 89(1) (liable person fails to pay telecommunications development levy). Miscellaneous 9 Section 156A(1)(n) (failing to comply with regulations made in relation to emergency call services). 10 Any other requirements in regulations made under Part 5 of this Act that identify the requirement as one that is section 157(1)(ch) (which relates to emergency call services) that are identified in those regulations as requirements that are subject to the enforcement regime in Part 7A of the Radiocommunications Act 1989. Consumer matters 11 Section 156A(1)(o) (retail provider fails to comply with Commission RSQ code). 12 Section 156A(1)(p) (retail provider fails to comply with Commission 111 contact code). 13 Section 240A (telecommunications service provider whose revenue exceeds $50 million fails to become member of industry dispute resolution scheme) (as inserted by section 33 of the Telecommunications Amendment Act 2025 ). 4 Provisions of this Act for which alleged non-compliance may result in action under Part 7A of Radiocommunications Act 1989