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

 

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news