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Commerce Commission Releases Discussion Paper

Issued 22 March 2002/027

Commerce Commission Releases Discussion Paper: TSO Cornerstone Issues

The Commerce Commission today released the first of two discussion papers outlining its proposed approach under the Telecommunications Act 2001 (the Act) to determining the cost of the Kiwi Share - now called the Telecommunications Service Obligations (TSO).

The Commission is required by the Act to annually determine the cost of the TSO and how this cost is to be shared between Telecom and other carriers.

"The TSO Cornerstone Issues Paper looks at the high level issues in determining the cost," explained Telecommunications Commissioner Douglas Webb.

"The paper discusses what kind of model should be used to estimate Telecom's costs in complying with the TSO and what basic assumptions should drive it. A key issue is how to determine which of Telecom's residential customers are commercially non-viable and therefore contribute to the TSO cost."

The Commission invites interested parties and industry participants to make written submissions on the proposed approaches to various TSO costing issues contained in the discussion paper.

Mr Webb said the second paper, to be released in mid April, looks at more detailed implementation issues.

After considering submissions, the Commission will hold a public conference in Wellington. The conference will allow interested parties to make oral presentations to the Commission and the Commission to ask questions. Details of the conference will be advised shortly.

To receive an electronic copy of the discussion paper (approximately 35 pages) please email The paper can also be downloaded from the Commission's website,

Submission details

The closing date for submissions, together with electronic versions, is 26 April 2002.

Electronic versions should be emailed to, and will be published on the Commission's website.

Hard copies of the submission should be posted to: Submission on TSO Cornerstone Issues Discussion Paper Commerce Commission PO Box 2351 Wellington

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