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Wholesale determination delivers choice

Telecommunications Act: Wholesale determination delivers choice for consumers

New Zealanders will soon have a greater choice in purchasing telecommunication services, particularly in regional areas.

The Commerce Commission today released its final determination relating to the supply of services on a wholesale basis between Telecom New Zealand Limited and TelstraClear Limited under the Telecommunications Act 2001. Services covered by the Commission’s determination include business line rental and local calling, fixed-to-mobile services, directory assistance, voice messaging, business and residential broadband access and data services outside the major centres.

“What this determination means for small businesses and customers is that they now have the choice of having either Telecom or TelstraClear as their supplier of many telecommunication services, even in areas beyond the reach of the TelstraClear access network,” said Douglas Webb, Telecommunications Commissioner.

“The Commission has ordered that these services are to be made available by Telecom for resale to TelstraClear customers. The Commission has set a wholesale price of 16% off Telecom’s standard retail prices.”

Today’s determination largely relates to the wholesaling of business services and residential broadband. TelstraClear has made a separate application in respect of residential local access and calling services, which is currently being investigated by the Commission. A draft determination on this second application will be released shortly.

Mr Webb said the Commission considered the state of competition in 18 product markets. The Commission identified the individual services TelstraClear will be able to resell in nine markets where competition is currently limited. A number of markets were found to be effectively competitive and the Commission declined to order resale in these markets.

Attached is a 4-page executive summary. The final determination is available on the Commission’s website, http:// http://www.comcom.govt.nz (select Telecommunications, Access Determinations).

The Commission’s determination is effective for 18 months from today, 12 May 2003.

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