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

 


Regulator pushes out copper line pricing deadline

Regulator pushes out copper line pricing deadline

By Paul McBeth

May. 22 (BusinessDesk) - The Commerce Commission has pushed out a deadline to set the regulated price Chorus can charge to access services on its copper lines after accepting concerns raised by the retail companies.

The regulator is aiming to make a draft decision on the final pricing principle (FPP) for Chorus’s unbundled bitstream access and unbundled copper local loop services by December, when the telecommunications network operator is expected to adhere to the new regulated prices initially set by using international comparisons, with a view to make a final ruling by April 1 next year, it said in a statement. Separately, Chorus said it was disappointed with the delay, which meant the price set in the initial pricing principle would take effect from December.

"The telco retailers have all expressed serious concerns about their ability to engage effectively on the technical complexities of the FPPs if consultation were confined to the period after a draft determination," the commission said. "They have sought more rounds of consultation to allow them to assess and comment on the commission's assumptions in the FPP modelling."

The telecommunications network operator sought the FPP process after the regulator set the UBA monthly price at $34.44 per line, up from the $32.35 price initially mulled in its draft decision. That was composed of $10.92 for UBA, which facilitates internet services, and $23.52 for the UCLL, used for voice telephony. The UBA service allows internet retailers to use Chorus’s components on the copper lines without having to replicate them.

The longer consultation process comes as Chorus appeals a High Court judgment upholding the commission's determination. At the hearing earlier this year, Chorus claimed the regulator erred in law when setting the price Chorus can charge for access to its UBA 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 goal of building a nationwide fibre network.

The commission rejected the claim, arguing that the change in regulation, rather than the decision, had shocked the market.

Chorus shares rose 2.3 percent to $1.75 yesterday, and have climbed 22 percent this year after being punished in 2013 during the height of the regulatory uncertainty.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news