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

 


Chorus puts up proposal for copper line pricing

Chorus puts up proposal for copper line pricing

Feb. 17 (BusinessDesk) - Chorus, the telecommunications network operator spun out of Telecom in 2011, has put up an alternative proposal to the Commerce Commission on how its physical copper lines should be regulated in a bid to fast-track the process.

The Wellington-based company says the regulator should use the existing network configuration as a hypothetical equivalent operator to determine the value of assets and level of operating cost at their current replacement cost, rather than using fibre-only and fibre/wireless as equivalents.

“Compared to the proposal in this submission for modelling a copper network, the fibre only and fibre/wireless options in the paper would be more costly and give rise to TSLRIC (total service long run incremental cost) prices that are higher, and the modelling much more complicated and time consuming,” the company said.

Chorus made the proposal as a submission on the commission’s work to set a final price for what the network operator can charge for services on its copper lines to find the true cost of the service rather than relying on international experience as a benchmark.

The review is broken into two parts, with the regulator seeking views on how to set the methodology in valuing the unbundled copper local loop service, which lets retailers rent the lines for voice and broadband services. The second part relates to the unbundled bitstream access service, which gives internet service providers access to the network company’s electronic switchgear on the copper lines.

Chorus also supported aligning the timetable for the UCLL and UBA processes to ensure the final pricing principle can be set by December this year, when the company is expected to adhere to the new regulated prices.

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 fell 1.7 percent to $1.445 on Friday, and have increased 0.4 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news