Wholesale determination delivers choice

Issued 14 June 2003-04/133

Telecommunications Act: Residential Wholesale determination delivers choice for residential customers

The Commerce Commission today released its final determination relating to the supply of residential 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 residential local access and calling, network messaging services, fax services, paging services and bundles of residential services.

"This determination will enable TelstraClear as a reseller to supply to residential customers many of Telecom's products," said Telecommunications Commissioner Douglas Webb. "This will increase competition which will ultimately benefit consumers."

TelstraClear is able to resell Telecom's Jetstream products to residential customers under an earlier Commission ruling.

Under the Telecommunications Act, TelstraClear had requested the Commission to determine the whole range of price and non-price terms and conditions.

"Commercial negotiation between the parties led to a significant narrowing in the scope of the original application," said Mr Webb.

The Telecommunications Act sets an initial wholesale price for the local access and calling service at 2 percent off Telecom's retail price, while the Commission has set the initial wholesale price of other residential services at 16 percent off Telecom's standard retail prices.

The Commission's determination is effective for 18 months from today, 14 June 2004. A copy of the determination is available at www.comcom.govt.nz , select Telecommunications Regulation.

ENDS

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