Telecom applies to Commission for pricing review
Issued 10 January 2006/087
Telecom applies to Commission for pricing review of Private Office Networking resale decision
Telecom New Zealand Limited has applied to the Commerce Commission for a review of the wholesale prices set by the Commission for Private Office Networking services under the Telecommunications Act 2001. This follows a similar application for a review received from TelstraClear Limited in December 2005.
On 9 December 2005, the Commission issued a determination (Decision 563) that set wholesale prices at 16 per cent off Telecom's retail prices. This discount is based on benchmarking of overseas regulated discounts.
Under section 42 of the Act, a party to a determination can request that the Commission review the price payable for the services.
In assessing this pricing review application, 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.
Decision 563 continues to have effect and is enforceable pending the issuing of a price review determination.
A copy of the application is available on
the Commission's website at: