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Telecommunications Act: revised TSO timetable

Telecommunications Act: revised TSO timetable

The Commerce Commission has revised its telecommunication service obligations (TSO) determination timetable to give additional time for the preparation of submissions and to accommodate expert participation in the process. In addition, the Commission will now host a workshop to look at the TSO modelling process. This workshop will replace a conference originally scheduled for 14 and 15 May 2003.

The Commission’s TSO cost modelling will utilise two models, the HCPM model, which has already been released, and the CostPro New Zealand (CPNZ) model, which deals mostly with core switching costs, and has not yet been released. The Commission intends to release the CPNZ model to industry before the modelling workshop in June.

The Commission will also release papers on the TSO cost of capital and TSO intangible benefits. The Commission will consider written submissions on the papers before it releases the TSO Draft Determination.

Indicative dates and events in the planned TSO determination process as follows:
Date in 2003 Event

19 May Commission releases its papers on TSO intangible benefits and TSO cost of capital

20 May Submissions due on Commission’s TSO cost model and Commission’s analysis of Telecom’s TSO cost model

4 & 5 June Workshop on the Commission’s HCPM and CPNZ models, including inputs (but not WACC or intangible benefits), and Commission’s analysis of Telecom’s model.

13 June Submissions due on Commission’s papers on intangible benefits and cost of capital

27 June Release of TSO Draft Determination

25 July Submissions due on TSO Draft Determination

11 – 15 August Conference on TSO Draft Determination

The TSO Final Determination will be released as soon as practicable after the completion of the conference on the Draft Determination. Background Section 86 of the Telecommunications Act 2001 states:

The Commission must make reasonable efforts to do the following things not later than 120 working days after the end of each financial year of a TSP under a TSO instrument:
(a) prepare a draft determination of the matters set out in section 88:
(b) give public notice of the draft determination:
(c) include in the public notice the closing date for submissions, which must not be later than 20 working days after the date of giving public notice.

Section 90 of Telecommunications Act states:

The Commission must make reasonable efforts to do the following things not later than 40 working days after the closing date for submissions under section 86(c):
(a) prepare a final determination of the matters set out in section 92:
(b) give public notice of the final determination:
(c) give a copy of the determination to all liable persons in relation to the TSO instrument.

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