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Principles Paper On Implementation Of A TSLRIC

Principles Paper On Implementation Of A TSLRIC Pricing

Media Release

Issued 20 February 2003-04/094

Telecommunications Act:Commission releases principles paper on implementation of a TSLRIC Pricing Methodology

The Commerce Commission today released a principles paper on the implementation of a Total Service Long Run Incremental Cost (TSLRIC) Pricing Methodology for Access Determinations under the Telecommunications Act 2001.

TSLRIC is a forward-looking cost based methodology that may be used by the Commission when making a pricing review determination for certain interconnection services. Interconnection allows calls to pass from a customer on one network to a customer on another. Interconnection payments are made between telecommunications operators.

A TSLRIC methodology will be used to assist the Commission in making its final determinations relating to the pricing review applications filed by both Telecom and TelstraClear in relation to the Commission's previous interconnection determination.

The paper is the result of the Commission's consultation on a TSLRIC pricing methodology for making determinations in respect of the price for designated interconnection access services. The consultation process has involved the Commission releasing discussion papers, inviting interested parties to make submissions, reviewing the submissions received and holding a conference. The Commission has also considered related issues in other Commission work under the Act, including the Telecommunications Service Obligations.

A copy of the principles paper is available on the Commission's website, select Telecommunications Regulation/TSLRIC.

ENDS

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