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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news