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Commission to investigate TelstraClear

26 November 2004

Commission to investigate TelstraClear and ihug applications for bitstream

The Commission has announced it will investigate two separate applications from TelstraClear Limited and ihug Limited for access to regulated bitstream under the Telecommunications Act.

Bitstream enables a telecommunications provider to provide internet access to its own customers using wholesale Asymmetric Digital Subscriber Line (ADSL) services purchased from Telecom.

“The Commission intends to progress these applications as rapidly as possible to provide certainty to the industry at a time of rapid change in the broadband market,” said Telecommunications Commissioner Douglas Webb.

Submissions from the parties on the applications are due by 9 December.

The TelstraClear and ihug Decisions to Investigate are available on the Commission’s website at http://www.comcom.govt.nz/telecommunications/Decisions.cfm

Background On 4 November 2004, TelstraClear applied to the Commission under section 20 of the Telecommunications Act for determination of the terms for the regulated supply to TelstraClear of (i) access to, and interconnection with, Telecom’s fixed PDN (bitstream access); and (ii) access to Telecom’s fixed PDN backhaul (bitstream backhaul). TelstraClear’s application relates to both price and non-term terms and conditions.

On 5 November, IHUG applied to the Commission under section 20 of the Act for determination of terms for the regulated supply of access to, and interconnection with, Telecom’s fixed PDN (bitstream access).

IHUG’s application relates to access to a 2mbps/128kbps bitstream service and the price of that access. Section 25 of the Telecommunications Act 2001 requires that the Commission: decide whether or not to investigate the matter; give written notice of its decision to the parties; give public notice of its decision; request the parties to the determination to make submissions on the matter by written notice to the Commission not later than 10 working days after receipt of notice from the Commission of a decision to investigate.

ENDS

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