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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news