This report outlines key regulatory developments and provides market analysis in the areas of Local Loop Unbundling as well as developments regarding Interconnection and the Telecommunications Service Obligation. A Telecommunications Amendment Bill enabled the introduction of unbundling of the local loop and the operational separation of the incumbent, Telecom New Zealand. Unbundled Bitstream Access and UBA Enhanced services are now available in New Zealand from the incumbent Telecom New Zealand, following regulatory reforms. Other regulatory developments are contained in the two separate reports: New Zealand - Regulatory Environment - Telecommunications Act and New Zealand - Regulatory Environment - Mobile, Wholesale & Number Portability.