This posting contains the text of Trevor Rogers' private member's Bill: Technology and Crimes Reform. It is being posted here in response to requests made on the Net. It may be distributed for comment, in the same way as a paper copy could legitimately be photocopied for comment. This document has been scanned, and may contain errors and/or differences to the original. You should check a paper copy if in doubt. This bill is currently before the Commerce select committee of the house, which has called for submissions which should be sent to The Clerk of the Commerce Select Committee, Parliament Buildings, Wellington. The closing date is 29th July. Text of Bill Begins:------------------ Trevor Rogers TECHNOLOGY AND CRIMES REFORM ANALYSIS Title 1. Short Title 2. Interpretation 3. Meaning of "objectionable" 4. Act to bind the Crown PART I IMAGES, SOUNDS, AND LIVE SHOWS 5. Purpose of Part Offences 6. Objectionable images and sounds 7. Live shows with objectionable content 8. Parts of image, sound, or live show 9. Exceptions Defences 10. Defences Penalties 11. Penalties Enforcement 12. Classification Office to examine and classify image, sound, or live show 13. Provisions of Films, Videos, and Publications Classification Act 1993 to apply Consequential Amendments to Crimes Act 1961 14. Prohibition on use of listening devices PART II TELECOMMUNICATION 15. Purpose of Part New Zealand Telephone Services 16. Sections to be read with Telecommunications Act 1987 17. New heading and sections substituted Additional Penalties for Objectionable Telephone Services for Pecuniary Gain 8A. Forfeiture of seized equipment, etc. 811. Disconnection of telephones Foreign Telecommunication Services 18. Network operator to prohibit telecommunication with foreign telecommunication service 19. Offence 20. Classification Office to reconsider classification 21. Meaning of "foreign telecommunication service" PART III BROADCASTS 22. Purpose of Part 23. Part to be read with Broadcasting Act 1989 24. Interpretation 25. Additional penalty for broadcasting objectionable material 26. Offences PART IV FOREIGN SATELLITE SERVICES 27. Purpose of Part 28. Orders proscribing objectionable foreign satellite services 29. Offence of supporting proscribed foreign satellite services A BILL INTITULED An Act to-- (a) Create offences and impose penalties relating to objectionable images, sounds, and live shows produced for pecuniary gain; and (b) Provide for the Office of Film and Literature Classification to examine and classify images, sounds, and live shows produced for pecuniary gain; and (c) Impose additional penalties for offences relating to objectionable telephone services and broadcasts transmitted for pecuniary gain; and (d) Prohibit telecommunication with foreign telecommunication services whose programmes contain objectionable images or objectionable sounds; and (e) Proscribe objectionable foreign satellite services; and Amend the Crimes Act 1961, the Telecommunications Act 1987, and the Broadcasting Act 1989, and to provide for other matters incidental thereto BE IT ENACTED by the Parliament of New Zealand as follows: 1. Short Title--This Act may be cited as the Technology and Crimes Reform Act 1994. 2. Interpretation--(1) In this Act, unless the context otherwise requires, -- "Broadcasting" has the meaning given to that term by section 2 of the Broadcasting Act 1989 (as amended by section 24 of this Act): "Live show" includes any theatrical, dancing, singing, music or other form of cultural expression, or entertainment, performance, amusement, game, spectacle, exhibition, display, or other activity performed for pecuniary gain: "Network operator' has the meaning given to that term by section 2 (1) of the Telecommunications Act 1987: "Programme" has the meaning given to that term by section 2 of the Broadcasting Act 1989: "Telecommunication link" has the meaning given to that term by section 2 (1) of the Telecommunications Act 1987: "Telephone station" has the meaning given to that term by section 2 (1) of the Telecommunications Act 1987. (2) Terms or expressions that are not defined in this Act, but that are defined in the Films, Videos, and Publications Classification Act 1993, have the meanings given to them by that Act. 3. Meaning of "objectionable"--For the purposes of this Act, "objectionable" has the meaning given to that term by section 3 of the Films, Videos, and Publications Classification Act 1993 as if images, sounds, live shows, programmes, or foreign satellite services were publications under that Act. 4. Act to bind the Crown--This Act binds the Crown. PART I IMAGES, SOUNDS, AND LIVE SHOWS 5. Purpose of Part--The purpose of this Part of this Act is to create offences and impose penalties relating to objectionable images, sounds, and live shows produced for pecuniary gain and to provide for the Classification Office to examine and classify any image, sound, or live show produced for pecuniary gain as if the image, sound, or live show were a publication under the Films, Videos, and Publications (Classification Act) 1993. Offences 6. Objectionable images and sounds--Subject to section 9 of this Act, every person commits an offence who broadcasts, transmits, communicates, or receives, through or by any broadcasting or telecommunications link or any electronic, light, sound, satellite, or laser transmission whatever, any objectionable image or objectionable sound for pecuniary gain. 7. Live shows with objectionable content--Subject to section 9 of this Act, every person commits an offence who organises, promotes, or takes part in objectionable live shows performed for pecuniary gain. 8. Parts of image, sound, or live show--A person may be convicted of an offence under section 6 or section 7 of this Act if the image, sound, or live show is in all the circumstances objectionable, notwithstanding that it is a part only of an image, sound, or live show that is not objectionable. Cf. 1963, No. 22, S. 22A; 1972, No. 136, S, 10; 1987, No. 85, S. 53; 1993, No. 94, s. 132 Technology and Crimes Reform 9. Exceptions--Nothing in section 6 or section 7 of this Act makes it an offence for any of the following persons to be possession of an objectionable image or objectionable sound (including any image or sound relating to an objectionable live show) where such possession is for the purpose of and in connection with the person's official duties: (a) The Chief Censor: (b) The Deputy Chief Censor: (c) Any classification officer: (d) Any person holding office pursuant to clause 2 of the First Schedule to the Films, Videos, and Publications Classification Act 1993: (e) Any member of the Film and Literature Board of Review: (f) Any Inspector of Publications: (g) Any member of the Police: (h) Any officer of the Customs: (i) Any Judge of the High Court, or District Court Judge, Coroner, or Justice: (j) In relation to any image or sound delivered to the National Librarian pursuant to section 64 of the Copyright Act 1962, the National Librarian, any other employee of the National Library Department, or any person employed in the Parliamentary Library: (k) Any other person in the service of the Crown. Cf. 1993, No. 94, s. 131 (4) Defences 10. Defences--(1) It shall be no defence to a charge under section 6 or section 7 of this Act that the defendant had no knowledge or no reasonable cause to believe that the image, sound, or live show to which the charge relates was objectionable. (2) It is a defence to a charge under section 6 of this Act, if the defendant proves that the defendant had possession of the image or sound to which the charge relates, in good faith,-- (a) For the purpose or with the intention of delivering it into the possession of a person lawfully entitled to have possession of it; or (b) For the purposes of any proceedings under this Act or any other enactment in relation to the image or sound; or (c) For the purpose of giving legal advice in relation to the image or sound; or (d) For the purposes of giving legal advice, or making representations, in relation to any proceedings; or (e) In accordance with, or for the purpose of complying with, any decision or order made in relation to the publication by the Chief Censor, the Classification Office, the Film and Literature Board of Review, or any Court, Judge, or Justice; or (f) In connection with the delivery of the image or sound to the National Librarian in accordance with section 64 of the Copyright Act 1962. (3) Nothing in subsection (2) of this section shall prejudice any defence that it is open to a person charged with an offence against this section to raise apart from that subsection. (4) Where a network operator is the defendant, it is a defence to a charge under section 6 of this Act that the network operator had no knowledge or no reasonable cause to believe that the image or sound to which the charge relates was objectionable. (5) For the avoidance of doubt, in this section the term "proceedings" includes proceedings before the Classification Office Cf. 1993, No. 94, s. 131 (5) (7) Penalties 11. Penalties--Any person who commits an offence against section 6 or section 7 of this Act is liable, on summary conviction, to a fine not exceeding,-- (a) In the case of an individual, $5,000: (b) In the case of a body corporate, $15,000: (c) In the case of an individual, for a second or subsequent offence, $10,000: (d) In the case of a body corporate, for a second or subsequent offence, $30,000. Cf. 1993, No. 94, s. 131 (2) Enforcement 12. Classification Office to examine and classify image, sound, or live show- -(1) Any person may request the Classification Office to examine and classify any image, sound, or live show produced for pecuniary gain. (2) As soon as practicable after a request has been received under subsection (1) of this section, the classification Office shall examine the image, sound, or live show to determine its classification. (3) After examining an image or sound, and having taken into account the matters referred to in section 3 of the Film, Videos, and Publications Classification Act 1993 as if the image or sound were a publication under that Act, the Classification Office shall classify the image or sound as-- (a) Unrestricted; or (b) Objectionable. (4) After examining a live show, and having taken into account 5 the matters referred to in section 3 of the Films, Videos, and Publications Classification Act 1993 as if the live show were a publication under that Act, the Classification Office shall classify the live show as-- (a) Unrestricted; or (b) Objectionable; or (c) Objectionable except in any one or more of the following circumstances: (i) If able to be viewed or heard by persons who have attained a specified age: (ii) If restricted' to certain persons or classes of persons: (iii) If used for one or more specified purposes. (5) Without limiting the power of the Classification Office to classify an image or sound as objectionable under subsection (2) or a live show as restricted under subsection (3) of this section, an image, sound, or live show that would otherwise be classified as objectionable may be classified as restricted in order to be made available to particular persons or classes of persons for educational, professional, scientific, literary, artistic, or technical purposes. Cf. 1993, No. 94, s. 23 13. Provisions of Films, Videos, and Publications Classification Act 1993 to apply--For the purposes of this Act, the provisions of section 4, Parts IV, V, VI, VII, sections 30 136 to 145, and Part IX of, and the First Schedule to, the Films, Videos, and Publications Classification Act 1993, so far as they are applicable and with the necessary modifications, shall apply to images, sounds, or live shows produced for pecuniary gain as if such images, sounds, or live shows were publications under the Films, Videos, and Publications Classification Act 1993. Consequential Amendments to Crimes Act 1961 14. Prohibition on use of listening devices--(1) Section 216B (1) of the Crimes Act 1961 (as inserted by section 2 of the Crimes Amendment Act 1979) is hereby amended by omitting the expression "subsections (2) and (3), and substituting the expression "subsections (2) to (4)". (2) Section 216B of the Crimes Act 1961 (as so inserted) is hereby further amended by adding the following subsection: "(4)Subsection (1) of this section does not apply to the interception by any member of the Police of any private communication where that member of the Police is authorised by a commissioned officer of the Police who believes on reasonable grounds that an offence is being committed under section 6 or section 7 of the Technology and Crimes Reform Act 1994. " PART II TELECOMMUNICATION 15. Purpose of Part--The purpose of this Part of this Act is to provide for additional penalties to be imposed on persons convicted of an offence involving the use of a telephone to transmit objectionable material for pecuniary gain, and to require a network operator to prohibit telecommunication with foreign telecommunication services whose programmes contain objectionable images or objectionable sounds. 16. Sections to be read with Telecommunications Act 1987--This section and the next 4 succeeding sections shall be read together with and deemed part of the Telecommunications Act 1987 (hereafter in those sections referred to as the principal Act). '1987, No. 116 Amendments: 1987, No. 200, s. 9 (2); 1988, No. 156, s. 4 (1); 1988, No. 164; 1989, No. 25, s. 86; 1989, No. 107, s. 10 (l); 1989, No. 148, s. 139 (1), (2); 1990, No. 21; 1991, No. 61 s. 19 (1); 1991, No. 69, s. 361 (1) 17. New heading and sections substituted--The principal Act is hereby amended by repealing section 8A, (as inserted by section 11 of the Telecommunications Amendment Act 1988), and substituting the following heading and sections: "Additional Penalties for objectionable Telephone Services for Pecuniary Gain "8A. Forfeiture of seized equipment - (1) on the conviction of any person of an offence under section 6 of the Technology and Crimes Reform Act 1994 involving the use of a telephone station, the Court may, in addition to any other penalty that may be imposed under that Act in respect of the offence, order that any equipment, thing, document, or money used in respect of the commission of the offence be forfeited to the Crown. ''(2) Where any such order is made, the provisions of subsections (4) to (6) of section 199 of the Summary Proceedings Act 1957, so far as they are applicable and with any necessary modifications, shall apply. "(3) Subject to subsection (2) of this section, every equipment, thing, or document forfeited to the Crown under this section shall be delivered to the Secretary for Commerce, and may be destroyed or otherwise disposed of in such manner as the Secretary thinks fit. "(4) Subject to subsection (2) of this section, all money forfeited to the Crown under this section shall be paid into the Crown Bank Account. Cf. 1977, No. 84, S. 123 "8B. Disconnection of telephones--(1) On the conviction of any person of an offence under section 6 of the Technology and Crimes Reform Act 1994 involving the use of a telephone station, the Court may, in addition to any penalty imposed under that Act or section 8A of this Act, make an order directing that any telephone station installed in premises used by that person be disconnected from those premises for such period, not exceeding 5 years, commencing with the date of the conviction, as may be specified in the order, and prohibiting that person from obtaining any other telephone station during the period when the order is in force. "(2) Notwithstanding subsection (1 ) of this section, if the person convicted is not the occupier of the premises concerned, no order shall be made under that subsection unless the occupier has had an opportunity of being heard in the matter. ''(3) If the person convicted is the lessee of the telephone connection concerned, the order, in the discretion of the Court, may apply to all telephone stations of which he or she is the lessee or to such one or more of those stations as the Court may specify. "(4) An order under subsection (1) of this section shall be notified by the Registrar of the Court to network operators, who shall take such steps as may be necessary to give effect to the order. ''(5) Any person affected by an order of the Court under this section may from time to time apply to the Court by which the order was made to remove the disqualification to which the order relates, or such part of the disqualification as may be referred to in the application, and on any such application the Court may, having regard to any hardship that the applicant or his or her family may suffer if the application is refused, the character of the applicant, the likelihood of the telephone service being used for the transmission of unlawful communications under the Technology and Crimes Reform Act 1994, and any other circumstances of the case, either by order remove the disqualification in whole or in part from such date as may be specified in the order, or refuse the application. Cf. 1977, No. 84, s. 124" Foreign Telecommunication Services 18. Network operator to prohibit telecommunication with foreign telecommunication service--(1) Where the Classification Office classifies any image or sound which forms part of any programme of any foreign telecommunication service as objectionable under section 12 (3) (b) of this Act, the Classification Office shall inform network operators and the foreign telecommunication service of that classification by notice in writing (2) A network operator shall prohibit telecommunication from within the network to any foreign telecommunication service identified in a notice issued by the Classification Office under subsection (1) of this section within 14 working days of receiving such a notice. 19. Offence--A network operator who does not comply with section 18 (2) of this Act commits an offence and is liable, on summary conviction, to a fine of S10,000 a day for each day that it fails to comply with the provisions of that section. 20. Classification Office to reconsider classification-- (1) The Classification Office shall examine any programme subject to a notice issued by the Classification Office under section 18 (1) of this Act at the request of a foreign telecommunication service and classify the programme as unrestricted or objectionable (2) Where the Classification Office classifies any programme examined under subsection (1) of this section, it shall inform network operators and the person providing that foreign telecommunication service of that classification by notice in writing (3) A notice issued by the Classification Office under subsection (2) of this section shall revoke the notice issued under section 18(1)of this Act. 21. Meaning of "foreign telecommunication service"--In this Part of this Act, unless the context otherwise requires, "foreign telecommunication service" means a person providing a service which consists wholly or mainly in the telecommunication from a place outside New Zealand of programmes which are capable of being received by a network in New Zealand. PART III BROADCASTS 22. Purpose of Part--The purpose of this Part of this Act is to amend the definition of the term "broadcasting" in section 2 of the Broadcasting Act 1989 to include any transmission made on the demand of a particular person for reception only by that person, so as to apply broadcasting standards to 0900 telephone services and to cable, satellite, and pay television channels, and to provide for additional penalties to be imposed on broadcasters convicted of an offence under section 6 of this Act. 23. Part to be read with Broadcasting Act 1989--This Part of this Act shall be read together with and deemed part of the Broadcasting Act 1989, (hereafter in this Part of this Act referred to as the principal Act). 19R9, No. 25 Amendments: 1989, NO. 148, s. 139 (3); 1990, NO. 1, 5. 65 (2) (b); 1990, NO. 13, 5. 2 (3); 1990, NO. 41, s. 46; 1990, NO. 103; 1991, NO. 21; 1991, NO. 60, s. 3 (4); 1992, No. 105, s. 56 (1); 1992, NO. 142, s. 42; 1993, NO. 69; 1993, NO. 82, s. 145; 1993, NO. 94, ss. I (3), 150 (1) 24. Interpretation--Section 2 of the principal Act is hereby amended by repealing the definition of the term "broadcasting", and substituting the following definition: " 'Broadcasting' means any transmission of programmes, whether or not encrypted, by radio waves or other 25 means of telecommunication for reception by the public by means of broadcasting receiving apparatus, but does not include any such transmission of programmes made solely for performance or display in a public place; and 'broadcast' has a corresponding 30 meaning:' . 25. Additional penalties for broadcasting objectionable material--The Broadcasting Act 1989 is hereby amended by inserting, after section 13, the following section: "13A. On the conviction of any broadcaster of an offence under section 6 of the Technology and Crimes Reform Act 1994, the Authority may, in addition to any penalty that may be imposed under that Act in respect of the offence, issue an order to direct the broadcaster to refrain-- "(a) From broadcasting; or "(b) From broadcasting advertised programmes (including any credit in respect of a sponsorship or underwriting arrangement entered into in relation to a programme),-- for such period, not exceeding 168 consecutive hours, in respect of each programme to which the conviction relates. and at such 10 time as shall be specified in the order." 26. Offences--Section 14 of the principal Act is hereby amended by inserting, as subsection (2), the following subsection: "(2) Every broadcaster commits an offence and is liable, on conviction on indictment, to a fine not exceeding $1.000,000 who fails to comply with an order made under section 1 3A of this Act. " PART IV FOREIGN SATELLITE SERVICES 27. Purpose of Part The purpose of this Part of this Act is to proscribe objectionable foreign satellite services and to create the offence of supporting proscribed foreign satellite services. 28. Orders proscribing objectionable foreign satellite services(1) Subject to this section, the Governor General may from time to time, by Order in Council, on the recommendation of the Minister of Communications, proscribe a foreign satellite service for the purposes of section 29 of this Act. (2) If the Classification Office considers that the quality of any relevant foreign satellite service containing an image or sound brought to its attention is objectionable and that the service should be the subject of an order under this section, it shall notify to the Minister of Communications details of the service and the reasons why it considers such an order should be made. (3) Where the Minister of Communications has been notified under subsection 12) of this section, he or she shall not make a recommendation to the Governor General to make an order under this section unless he or she is satisfied that the making of the order-- (a) Is in the public interest; and (b) Is compatible with any international obligations of New Zealand. (4) An order under this section-- (a) May make such provision for the purpose of identifying a particular foreign satellite service as the Governor General thinks fit; and (b) Shall be deemed to be a regulation for the purposes of the Regulations (Disallowance) Act 1989. (5) In this Part of this Act. unless the context otherwise requires,-- "Foreign satellite service" means a service which consists wholly or mainly in the transmission by satellite from a place outside New Zealand of television or sound programmes which are capable of being received in New Zealand: "Relevant foreign satellite service" means,-- (a) In relation to television, a foreign satellite service which consists wholly or mainly in the transmission of television programmes; and (b) In relation to radio, a foreign satellite service which consists wholly or mainly in the transmission of sound programmes. 29. Offence of supporting proscribed foreign satellite eration or day to day ru nning of a proscribed service: (b) Supplying, or offering to supply, programme material to be included in any programme transmitted in the provision of a proscribed service: (c) Arranging for, or inviting any other person to supply programme material to be so included: (d) Advertising, by means of programmes transmitted in the provision of a proscribed service, goods supplied, or services provided, by that person: (e) Publishing the times or other details of any programmes which are to be transmitted in the provision of a proscribed service or (otherwise than by publishing such details) publishing an advertisement of matter calculated to promote a proscribed service (whether directly or indirectly: (f) Supplying or offering to supply any decoding equipment which is designed or adapted to be used primarily for the purpose of enabling the reception of programmes transmitted in the provision of a proscribed service. (4) In any proceedings against a person for an offence under this section, it is a defence to prove that he or she did not know, and had no reasonable cause to suspect, that the service in connection with which the act was done was a proscribed 1 5 service. (5) A person who is guilty of an offence under this section shall be liable,- - (a) On summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding S100.000, or both: (b) On conviction on indictment, to imprisonment for a term not exceeding two years or to a fine not exceeding S250,000, or both. (6) For the purposes of this section, a person exposing decoding equipment for supply or having such equipment in his possession for supply shall be deemed to offer to supply it. (7) The Consumer Guarantees Act 1993 shall have effect, for the purpose of construing references in this section, to the supply of any thing as it has effect for the purpose of construing references in that Act to the supply of any goods. (8) In this section, "programme material" includes-- (a) A film (within the meaning of the Films, Videos, and Publications Classification Act 1993); and (b) Any other recording; and (c) Any advertisement or other advertising material. Cf. Broadcasting Act 1990 (UK), ss. 177, 178 Wellington, New Zealand. Published under the authority of the New Zealand Government - 1994. 49184F - 94/NS APPENDIX A: Telecommunications Act (1987): ---------- Section 2: Interpretation (1) ``Corporation'' means Telecom Corporation of New Zealand Limited; and includes any subsidiary (within the meaning of section 158 of the Companies Act 1955) of that company:'' ``Network'' means a system comprising telecommunication links to permit telecommunication: ``Network operator'' means the Corporation and any person declared by the Governor-General by Order in Council under section 2A of this Act to be a network operator for the purposes of this Act or any provision or provisions of this Act. ``Telecommunication'' means the conveyance from one device to another of any sign, signal, impulse, writing, image, sound, instruction, information, or intelligence of any nature, whether for the information or any person using the device or not: ``Telecommunication link'' means any line, radio frequency, or other medium used for telecommunications. Section 2A: Order in Council declaring a person to be network operator (1) The purpose of this section is to facilitate entry into and competition in telecommunication markets. (2) Where the Minister is satisfied that a declaration is necessary to enable a person to commence or carry on a business of providing --- (a) Facilities for telecommunication between 10 or more other persons, being facilities enabling at least 10 of those persons to communicate with each other; or (b) Facilities for broadcasting to 500 or more other persons, being facilities that enable programmes to be transmitted along a line or lines to each of those persons, --- the Minister shall make a recommendation under subsection (3) of this section. (3) The Governor-General may from time to time, on the recommendation of the Minister, by Order in Council published in the Gazette, declare a person to be a network operator for the purposes of this Act or any provision or provisions of this Act. ------------------------------ APPENDIX B: TELECOMMUNICATIONS INFORMATION LEAFLET NO 2 NETWORK OPERATOR DESIGNATION FOR TELECOMMUNICATIONS AND CABLE TELEVISION SERVICES INTRODUCTION 1 The objective of the New Zealand Government is efficient markets in telecommunications goods and services. To this end, the Government has adopted policies and promoted statutory measures to facilitate competitive entry into those markets and to maintain the conditions for effective competition trading. 2 In deregulating telecommunications the Government was concerned that all operators of a network should have the same rights of access to land resources to lay lines or cables. A statutory process was enacted to enable all operators, where necessary, to be declared a network operator and to enjoy special rights of access. This provision was later extended to operators of a cable broadcasting service. 3 This leaflet outlines the process of network operator designation. It is issued for information purposes, and is not a substitute for reference to the precise wording of the relevant statutes or for professional legal advice. LEGISLATION 4 The relevant legislation for designation as a network operator is section 2A of the Telecommunications Act 1987 as amended by section 4 of the Telecommunications Amendment Act 1988, and further amended by section 86(2) of the Broadcasting Act 1989. This last amendment extended the scope of the designation to include providers of facilities for cable broadcasting. 5 The purpose of an Order in Council declaring a person to be a network operator "is to facilitate entry into and competition in telecommunications markets", (Section 2A(l) of the Telecommunications Act 1987, as amended). Later this provision was extended to cover persons providing broadcasting services by cable. 6 The most important statutory privilege provided by network operator status is the special rights of access to land, and in particular the road reserve, to lay or construct lines where this is required to commence and carry on a telecommunications business, or a cable broadcasting business. To gain these rights a prospective network operator has to apply to the Minister of Communications making a case in terms of section 2A(2) of the Act. 7 Section 2A(2) reads as follows: "Where the Minister is satisfied that declaration is necessary to enable a person to commence or carry on a business of providing (a) facilities for telecommunications between 10 or more other persons, being facilities enabling at least 10 of those persons to communicate with each other; or (b) Facilities for broadcasting to 500 or more other persons, being facilities that enable programmes to be transmitted along a line or lines to each of those persons, the Minister shall make a recommendation under subsection (3) of this section." 8 If the Minister is satisfied that the application meets the criteria specified in the Act, a recommendation is made to the Governor general, for an Order in Council, declaring the applicant to be a network operator. The Order in Council is published in the Gazette. 9 Subsection (4) of the Act provides that where the Minister is satisfied that a network operator has ceased to provide facilities for telecommunications or cable broadcasting, the Minister shall make a recommendation under subsection (5) of section 2A of the Telecommunications Act. Under subsection (5) the Governor General may from time to time, on the recommendation of the Minister, by Order in Council published in the Gazette, revoke a declaration made under subsection (3). 10 Under the Telecommunications Amendment Act 1987 (as amended by the Telecommunications Act 1988) the term network operator is used in the following sections: * relating to the protection of networks from the connection of unauthorised equipment (section 6) and the rights to seek damages (section 20D) or injunctions (section 20C) in the event of the contravention of section 6. * relating to the admissibility of evidence (telegrams, telexes and toll calls) (section 9). * relating to the rights: - of entry to any land to construct lines (section ll): ie to appeal to a district Court in the event of unreasonable refusal by a landowner to negotiate terms and conditions for entry; - of entry with respect to existing lines and existing works (section 12); to remove trees (sections 13 and 14); to construct or repair lines on roads (section 15); - to request payment for altering lines or works on a road (section 16); - to construct and maintain telephone cabinets, etc on roads (section 18). Matters relating to the foregoing monitoring for the purpose of maintaining telecommunications (section 10); avoiding interference with public traffic (section 17); compensation for injurious affection (section l9); protection of title to lines and works (section 20). ll Network operator status is not a prerequisite to providing either telecommunications or cable broadcasting services; that is, these services can be provided without declaration as a network operator. A person contemplating entering the telecommunications or cable television markets, therefore, is able to provide its services without network operator status but, should it find it necessary to have the special rights of access to land that network operator status provides, it may apply to the Minister making its case in terms of section 2A(2) of the Act. Declaration as a network operator does not imply Government endorsement of the company's business proposal. 12 Before making a recommendation under section 2A(2) the Minister must be satisfied that network operator status is necessary. In this regard, the Minister must be satisfied that without the declaration granting network operator status the proposal would not proceed. Further, the Minister must be satisfied that the applicant's proposal will in fact place it in the business of providing the facilities contemplated in section 2A(2). APPLICATIONS 13 The processing of applications for designation as a network operator is managed by the Telecommunications Section of the Communications Division, Ministry of Commerce, who advise the Minister of Communications. 14 The Ministry is willing to answer any questions or to meet with prospective applicants. Inquiries about the process should be directed to The Manager Telecommunications Policy Communications Division Ministry of Commerce PO Box 1473 WELLINGTON Telephone: (04) 472 0030 Facsimile: (04) 499 0797 15 To assist the processing of applications, it is suggested that applications include: - details of the actual business to be provided, including anticipated customer levels; - a copy or details of the company's business plan, showing how the business development is to proceed; - details of costings and financial planning regarding the development and implementation of the proposal; - details of geographic areas in which cable laying will be necessary, and the number of customers that will be reached by that cable. 16 The Minister should also be assured that any application for network operator is substantial. To this end any application should also include: - a copy of the company's certificate of incorporation, (this is essential to establish that the company is a legal entity); - a list of the company's managers, directors, and major shareholders; and a brief company history. 17 Assuming the information provided is complete, the Ministry of Commerce will prepare a report to the Minister. If the Minister is satisfied that it is necessary for the applicant to be designated a network operator, the Minister is required to recommend that the Governor General, by Order in Council published in the Gazette, declare the applicant to be a network operator for the purposes of the Telecommunications Act. The Ministry's objective is to have this whole process completed within six weeks of receiving the application and the full information requirements. 18 Once the necessary Order in Council has been made, it comes into force twenty eight days later. Communications Division Ministry of Commerce 23 March 1992