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Telecommunications Act: update on local loop

Media Release

Issued 20 December 2002-03 / 092

Telecommunications Act: update on local loop
and public data network

The Commerce Commission expects to commence in March 2003 a review of the desirability of regulating the unbundling of Telecom New Zealand Limited’s local loop network and fixed Public Data Network, and to provide a report to the Minister of Communications by 20 December 2003.

Today is the first anniversary of the commencement of the Telecommunications Act 2001. The Act says the Commission may commence such a review after the first anniversary of the Act.

Section 64 of Telecommunications Act 2001 requires the Commission to investigate whether or not each of the following services should be regulated:
- access to the unbundled elements of Telecom’s local loop network; and
- access to the unbundled elements of, and interconnection with, Telecom’s fixed Public Data Network.

Once the Commission has given public notice of the commencement of the investigations, it must make reasonable efforts to deliver a final report to the Minister within 120 working days, but in any event not later than 20 December 2003.


The Telecommunications Act 2001 defines a local loop network and a fixed Public Data Network as follows:
- local loop network means all lines, including cables and aerial lines, between a residential or business telecommunications services user's distribution point where it enters the user's building (or, in the case of commercial buildings, the building distribution frames) and the local telephone exchange distribution frame or optical fibre distribution frame or equivalent facility;
- fixed PDN means a PDN, or that part of a PDN, that connects an end-user’s building (or, in the case of commercial buildings, the building distribution frames) to a data switch or equivalent facility; and includes the data switch or equivalent facility and that part of the over telecommunication link within the building that connects to the end-user’s equipment; and
- PDN or public data network means a data network used, or intended for use, in whole or in part, by the public

Section 64 of the Act sets out the requirements on the Commission to undertake the investigations into whether or not the services should be regulated as designated or specified services.

Part 1 of Schedule 3 of the Act governs the procedure for undertaking the investigations.


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