TelstraClear and Telecom apply to Commission
TelstraClear and Telecom apply to Commission for Residential Wholesale Pricing Review
TelstraClear Limited and Telecom New Zealand Limited have independently applied to the Commerce Commission for a pricing review of the Commission's residential wholesale determination (Decision 525) under section 42 of the Telecommunications Act 2001.
The Commission released its determination relating to the supply of residential services on a wholesale basis between the two parties on 14 June 2004.
Under section 42 of the Act, a party to a determination can request the Commission to review the part of the residential wholesale determination that relates to the price to be paid for the services.
The original residential wholesale determination related to residential services including residential local access and calling, network messaging services, fax services, paging services and bundles of residential services.
The initial wholesale price for the local access and calling service is fixed by the Act at 2 percent off Telecom's standard retail price, while the Commission set the initial wholesale price of other residential services, based on benchmarking of overseas regulated discounts, at 16 percent off Telecom's retail prices.
In assessing the pricing review applications, the Commission will replace the initial prices with final prices calculated by measuring the costs saved by supplying the services at wholesale rather than retail. The Commission has provided copies of the applications to the parties and requested comments.
Decision 525 continues to have
effect and is enforceable pending the issuing of a price