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

 


Regulator sets out early view on copper network pricing

Regulator sets out early view on copper network pricing model

By Paul McBeth

July 9 (BusinessDesk) - The Commerce Commission is seeking feedback on a new paper setting out its preliminary view on what model to use when setting the regulated price on Chorus's copper line network.

The antitrust regulator anticipates modelling a fibre-to-the-home network with fixed wireless access in remote areas to come up with the unbundled copper local loop service and use costs based on Chorus's copper-based inputs for the unbundled bitstream access service, it said in a statement. Both models will use third-party assets, such as lines companies' power poles. UCLL lets retailers rent the lines for voice and broadband services while UBA gives internet service providers access to the network company’s electronic switchgear on the copper lines.

The commission is trying to develop a model to find the total service long run incremental cost (TSLRIC) for building an equivalent network, which it will then use to set a final price to regulate Chorus's copper line services after the network operator sought the more thorough process after disagreeing with the initial price set using a theoretical model.

"We have been working closely with our external advisers to formulate a set of proposals on building cost models for the telecommunications services we are pricing," Telecommunications Commissioner Stephen Gale said in a statement. "We now welcome input on our proposed approach and a number of key modelling decisions prior to assisting us with modelling the UCLL and UBA services."

Submissions are due on Aug. 6, with a draft determination expected at the start of December and a final decision in April next year.

The regulator is proposing a five-year regulatory period, and will decide on whether to backdate prices when announcing its draft determination.

The consultation comes as Chorus appeals a High Court judgment upholding the commission's determination, with a hearing in the Court of Appeal scheduled for the end of this month.

At the High Court 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.

Shares of Chorus fell 0.3 percent to $1.725.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news