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

 


Two reports on rate of return for telecommunications

Commerce Commission publishes expert reports on rate of return on capital for telecommunications services
Issued 23 June 2014

Release No. 119

The Commerce Commission today published two expert reports about 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).

As part of the final pricing principle (FPP) process, the Commission needs to determine a WACC for the UCLL and UBA services. The Commission commissioned two expert reports to assist in reaching a view regarding the WACC for UCLL and UBA.

The first report is by Associate Professor Martin Lally of Victoria University of Wellington and addresses the tax-adjusted market risk premium (TAMRP) and the methodology for estimating the cost of debt.

The second report, by Oxera Consulting Ltd, covers asset beta, leverage and an appropriate long-term credit rating.

The Commission invites interested parties to submit their comments on the papers, by 5pm Monday 21 July 2014. There will then be two weeks for cross-submissions, which should be submitted by 5pm Monday 4 August 2014.

There will be a further opportunity to submit on WACC, including the specific parameter values the Commission decides to adopt, in response to the draft UCLL and UBA price review determinations to be released on 1 December 2014.

You can find the expert reports on the Commission’s website on the UCLL and UBA final pricing principle price review page.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news