Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


ComCom kicks off UBA final pricing principle process

ComCom kicks off UBA final pricing principle process

By Paul McBeth

Feb. 7 (BusinessDesk) - The Commerce Commission has outlined its proposed process to determine pricing for Chorus’s regulated copper network, and hopes to achieve a result by December when reduced prices are scheduled to kick in for the network operator.

The regulator today released a process and issues paper on how it will determine the final pricing principle for Chorus’s unbundled bitstream access services, which gives internet service providers access to the network company’s electronic switchgear on the copper lines.

The final pricing principle means the watchdog will have to determine an economic cost model to find the true cost of the service rather than relying on international experience as a benchmark.

The commission is already working on a similar determination for access to Chorus’s services on the unbundled local loop, which lets retailers rent the lines for voice and broadband services, and will use the UCLL process to help inform the UBA one.

Its initial view is that it will use Chorus’s copper network and potentially the rural broadband initiative’s fixed wireless in its modelling to determine the price.

The commission aims to complete the review by Dec. 1, when its previous ruling comes into effect and would impose steep cuts to what Chorus can charge its customers for access to its UBA services.

“The new UBA price takes effect on 1 December and will have a significant impact on the New Zealand fixed-line telecommunications market,” Telecommunications Commissioner Stephen Gale said in a statement. “It’s important the commission takes steps to provide certainty by setting a final price by this date.”

Last year the Commerce Commission proposed cutting the network operator’s pricing on its copper line services, which Chorus says has left a $1 billion hole in the funding to finance roll out of the government-sponsored ultrafast broadband network.

Chorus is in negotiations with Crown Fibre Holdings over the building of the network, but Communications Minister Amy Adams has indicated the government expects the company to fill most of the $1 billion hole.

The company’s shares last traded at $1.38, and have slipped 4.2 percent this year.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news