Telecommunications Commissioner Ross Patterson says that availability of video on demand on the internet will drive the uptake of high speed broadband in New Zealand, but he will not get involved in regulating the issue.
A draft report from the Commerce Commission says video-on-demand and the cost of connecting are two critical factors affecting the uptake of the service.
Rural consumers are most concerned with a basic broadband connection.
Dr Patterson says overseas experience shows video-on-demand is a deciding factor for uptake.
And while the Commerce Commission has just started investigating concerns that Sky TV is shutting out competition with its video content partnerships with internet providers, Dr Patterson says he has no role to play in the issue.
Dr Patterson says industry players have concerns such as cost and he is confident they will be addressed.
These market players have already demonstrated that they will tackle issues such as data caps, backhaul capacity and internet protocol interconnection without the need for a regulator, he says.