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

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news