Accounting Separation requirements top-notch
Commission’s Accounting Separation requirements top-notch – InternetNZ
5 December 2008
InternetNZ (Internet New
Zealand Inc) has reiterated today its strong
support for the Commerce Commission’s Disclosure Requirements as
released in late October for public comment.
“Accounting separation is a vital complement to
separation. Proper information disclosure requirements will allow
regulators and the industry to be sure that Telecom is meeting its
operational separation undertakings, and that the prices it charges for
services are related to the real costs involved,” says Executive
Director Keith Davidson.
“The robust regime the Commission has outlined
will lead to real
benefits for consumers and the economy as a whole.
“A successful operational separation regime,
underpinned by robust
accounting separation, will help the development of the competition
needed to drive investment in better broadband services.
“We are pleased
to see that many of our suggestions have been taken into
account by the Commission. The draft requirements document sets out a
much stronger set of requirements for Telecom than the earlier
discussion paper did.
“The industry and consumers need this strong
regime. Without it, nobody
can accurately work out whether operational separation is working or
not. Transparency is vital to a competitive, vibrant telecommunications
industry, and this accounting separation model can provide it.
“InternetNZ calls on
the Commission to stick to the regime set out when
it finalises the framework. Any weakening of the final requirements
would be to the detriment of consumers and the industry as a whole,”
InternetNZ’s submission welcoming the
Commission’s decision is on its
website at www.internetnz.net.nz, having been lodged in early November.