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Commerce Commission To Determine Interconnection

Media Release

Issued 19 June 2002 / 066

Commerce Commission to determine interconnection between TelstraClear and Telecom networks

The Commerce Commission today announced it would investigate TelstraClear Limited's application for a determination regarding interconnection with Telecom New Zealand Limited's fixed Public Switched Telephone Network and reciprocal interconnection by Telecom with the TelstraClear network.

The Commission also announced it would not separately investigate Telecom's two applications for determinations regarding interconnection between the two networks. Instead it will address all matters raised by Telecom in the context of the TelstraClear application.

"The Commission is satisfied that all matters Telecom seeks to advance in its applications can be addressed in the context of the TelstraClear application and that it would therefore be more efficient to deal with a single application," said Osmond Borthwick, Manager of the Commission's Network Access Group.

"The Commission is satisfied that neither party would be advantaged or disadvantaged by proceeding in this way. The Commission attributes no significance to a party's status as either applicant or respondent in respect of any application," he added.

TelstraClear applied to the Commission last month requesting an access determination under the Telecommunications Act 2001 (the Act) in respect of both interconnection and resale (wholesale) services. The Commission has yet to make a decision to investigate the element of TelstraClear's application that relates to resale (wholesale) services. Under section 9 of the Act, the Commission issued an Order on June 11 stating that it would separate TelstraClear's application into two distinct types of designated services - interconnection services and resale (wholesale) services. The Commission found that "for administrative ease and efficiency, the two types of service shall be analysed individually, under separate timetables." The Commission notified TelstraClear and Telecom on June 11.

Under section 25 of the Act, the Commission has requested both parties to make written submissions on the interconnection application within 10 working days.

Mr Borthwick said the Commission has 50 working days to investigate TelstraClear's application, and a determination on interconnection is expected in late August.


TelstraClear Limited applied to the Commission for an access determination under the Telecommunications Act 2001 in respect of both interconnection and wholesale services on May 16 2002. Telecom New Zealand Limited applied to the Commission for an access determination under the Act in respect of interconnection services on May 17 and 22.

The Commission notified both parties to the determination on receipt of the applications. Under section 24 of the Act, the Commission sought comment from both parties on all applications. Under section 25, the Commission must decide whether or not to investigate the application after receiving comments from the parties.

Section 25 of the Telecommunications Act 2001 states:

Commission must decide whether to investigate

(1) The Commission must make reasonable efforts to do the following
things not later than 10 working days after the date by which the parties
may comment on the application:

a) decide whether or not to investigate the matter:
b) give written notice of its decision to the parties:
c) give public notice of its decision:
d) request the parties to the determination to make submissions on the matter by written notice to the Commission not later than 10 working days after receipt of the notice from the Commission.

(2) Subsection (1)(d) applies only if the Commission has decided under
subsection (1)(a) to investigate the matter.


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