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

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news