Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Telecommunications Act: Commission sets final TSO


Telecommunications Act: Commission sets final TSO cost

The Commerce Commission has today announced its calculation of Telecom New Zealand’s net cost of complying with its telecommunication service obligations (TSO) for the period from 20 December 2001 to 30 June 2002.

The net cost is $34.72 million for the part year period, or $65.67million annualised. This cost is $7.78 million lower on an annual basis than the Commission’s initial calculation of $73.45 million announced in June.

Telecommunications Commissioner Douglas Webb said the Commission received detailed submissions on its draft determination, which had resulted in its recalculation of the final cost.

“The Commission has used a higher cost of capital relating to the TSO business in the final decision,” said Mr Webb. “Though the increased return on capital allowed to Telecom would have increased the net cost, this change was more than offset by the adoption of a wireless technology cap on the costs of remote customers, who were previously serviced by fibre-optic systems, and by other adjustments in the calculation process.”

The net cost of the TSO is shared between Telecom and other network operators providing retail services during the period covered by the calculation.

Those operators are TelstraClear Limited, WorldxChange Communications Limited, Vodafone New Zealand Limited, CallPlus Limited, Compass Communications Limited, Teamtalk Limited, The Internet Group Limited (ihug) and Global One Communications (recently merged with Equant New Zealand Limited). The apportionment of the cost between Telecom and network operators is based on proportionate shares of telecommunications revenues as shown in the following table:


REPORTED CARRIER LIABLE REVENUES For period 20 December 2001 – 30 June 2002
Liable % of TSO Charge
Revenue total
($000) ($000)
Telecom 1,206,884,000 75.89% 26,352,406
Vodafone 301,232,000 18.94% 6,577,424
TelstraClear 74,879,000 4.71% 1,634,989
CallPlus 3,280,739 0.21% 71,635
WorldxChange 2,616,603 0.16% 57,134
Teamtalk 879,514 0.06% 19,204
Ihug 334,988 0.02% 7,314
Compass 184,559 0.01% 4,030
Equant 0 0.00% 0
Total 1,590,291,403 100.00% 34,724,137

A copy of the Commission’s final determination is available on the website, www.comcom.govt.nz, select Telecommunications Regulation.

Note: The Commission has commenced the process of determining the net cost to Telecom of meeting its TSO obligations for the 2002/2003 financial year.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>