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

 

Regulator narrowed copper pricing models too much: Chorus

Regulator narrowed copper pricing models too much, Chorus lawyer says

By Paul McBeth

March 17 (BusinessDesk) - The Commerce Commission narrowed down its modelling to set the regulated price of Chorus’s copper lines without any evidential backing and didn’t account for a section of the act designed to minimise the risk to investors in telecommunications services, the High Court heard today.

The regulator erred in law when setting the price Chorus can charge for access to its unbundled bitstream access services in that it didn’t have any evidential basis to narrow its inquiry and ignored a section of the legislation aiming to support the government’s aims in building a nationwide fibre network, counsel for Chorus, David Goddard QC, told Justice Stephen Kos in the High Court in Wellington.

Goddard said the warning signals should have started sounding when the number of countries the commission was using as a benchmark to set the initial price was whittled down to two nations, Sweden and Denmark. At that stage the commission should have considered section 18 of the act, which was designed to protect innovation and investment in the sector.

“The whole point of section 18 is it tells you how to approach uncertainty, it tells you not to risk innovation and investment,” Goddard said.

The regulator didn’t have a sound reason for limiting its benchmark price range without taking in other factors, or the legislative requirement to support investment, he said.

Chorus is appealing the commission’s final determination in November last year setting the UBA monthly price at $34.44 per line, up from the $32.35 price initially mulled in his draft decision, with the additional UBA component accounting for $10.92 and the unbundled copper local loop accounting for $23.52.

The court heard a cross-appeal by Orcon and the consumer agencies was dropped. The Commerce Commission will put forward its argument after Chorus, followed by Vodafone New Zealand, Orcon, and finally by Telecom.

The judge-alone hearing is set down for four days and is continuing.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO: