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

 


Consultation on cost of capital for telecommunication price

Commission consults on cost of capital for telecommunications price reviews


The Commerce Commission is seeking submissions on its proposed approach to setting the rate of return on capital for the unbundled copper local loop (UCLL) network and the unbundled bitstream access (UBA) service.

The allowed rate of return on capital is also known as the ‘weighted average cost of capital’ (WACC).

“To set these prices we are estimating the costs of the UCLL network and the UBA equipment,” Telecommunications Commissioner Dr Stephen Gale said. “The prices that will be allowed will also include the WACC.”

The Commission proposes to use the same general approach to the cost of capital that was developed for the regulation of energy networks and airports. This approach was incorporated in the 2010 cost of capital input methodologies (IMs) that were upheld in appeals to the High Court last year.

The Commission will be seeking independent expert advice to tailor the general approach to allow for the specific risks and capital structure of a telecommunications network business.

The Commission invites submissions, supported by evidence, on the proposed approach. Interested parties will have a further opportunity to submit on WACC, including the specific parameters the Commission adopts, in response to the draft UCLL and UBA price review determinations.

The consultation paper can be viewed at: www.comcom.govt.nz/uba-final-pricing-principle-price-review orwww.comcom.govt.nz/ucll-final-pricing-principle

Submissions are due by 5pm Friday 28 March 2014. Please email submissions to telco@comcom.govt.nz.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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