Google warned that New Zealand will be seeing big companies walking out of the country as it continue to pursue The Telecommunications Interception Capability and Security Bill.

The bill compels all telecommunications companies to give technical assistance to the Government Communications Security Bureau (GCSB), a spy agency, to make 'lawful' interception with customers' calls through "full interception capability". The bill also forced telecommunications companies to first get an approval from GCSB before making any changes to network security.

Google had now joined Telcos Telecom, Vodafone, chorus and Kim Dotcom's Mega to the Law Society in opposing the bill.

According to the written statement from Google, it emphasised that the significant additional costs, time and challenges required by the bill in question could stop local as well as international communications firms from introducing innovations with their services to New Zealand. Google also cautioned that because of the bill, those international companies already making investments might be forced to leave and withdraw all businesses from New Zealand.

In as much as Google acknowledge that "interception tools are necessary for the effective maintenance of law," however, those tools handed to security agencies should be lawful and transparent. Google said that if a loophole in transparency exists then the bill "would likely raise public fears of unjustified intrusion into their privacy."

Google said that New Zealand is one of the most isolated countries in the world and had benefited greatly from the Internet, "yet these social and economic benefits would be reduced by many of the additional obligations introduced by the bill."

Chorus principal Airihi Mahuika also expressed the same opinions about the proposed bill, saying, "We don't agree that statutory powers for GCSB to require additional security are necessary or in the public interest. The current proposals could require significant investment, delays in procurement processes, impact on commercial interest, contractual obligations and potential stifle innovation."

Both Telecom and Vodafone were concerned that due to the bill, customers would likely shift to their big time rivals like Skype when making calls. The two companies admitted that Skype had already taken over a large part of the market from them and the bill will make the competition harder.

However, as much as regulatory affairs managers John Wesley-Smith believed that the bill was unnecessary, he said that telecommunications companies will not leave New Zealand if the government applies the bill equally to service providers.

Mega CEO Vikrm Kumar argued that "the competitive position of new Zealand will be significantly weakened if this bill passes in its current form. We're disappointed that no evidence has been provided whatsoever on the need for this law, particularly in relation to service providers."

Objective of the Bill:

  • The interception obligations imposed on the telecommunications industry are clear and reflect the changing telecommunications industry structure, do not impose unnecessary compliance costs, and are sufficiently flexible to match today's operational needs and future technology developments
  • That network operators are obliged to engage with the Government on network security matters where they may raise a risk to New Zealand's national security or economic well-being, inform the government of network decisions that may be of particular national security interest, and work with the Government to apply any require risk-based and proportionate security measures.
  • The full copy of the proposed bill is available at www.legislation.govt.nz/bill/government