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

 


Chorus 'Boost' service likely to breach rules: regulator

Chorus 'Boost' service likely to breach rules, regulator advised

By Paul McBeth

Sept. 4 (BusinessDesk) - Telecommunications network operator Chorus's proposed Boost variant service would likely breach the terms of its regulation, according to legal advice received by the Commerce Commission.

The antitrust regulator is seeking feedback on a legal opinion by David Laurenson QC and James Every-Palmer, which took the view Chorus's plans breached its 'good faith' obligation, the commission said in a statement.

The lawyers said Chorus's plans were inconsistent with the 'good faith' provision of its standard terms determination, in that they were an attempt to constrain the regulator service on the copper network, would hold back end-user throughput, and would define and constrain regulated services by Chorus's view of reasonable usage.

The commission is considering the extent to which the new variant services would complement or substitute existing regulated unbundled bitstream access services, what investment they would need, and whether the changes are consistent with the Telecommunications Act. The regulator will also consider whether the proposed changes, including the withdrawal of the VDSL and bandwidth management services, are allowed under existing regulation, and what the impact will be on consumers.

The commission sought the legal opinion after Spark New Zealand, formerly Telecom Corp, requested an investigation. In its submission on the Boost services, Spark said it didn't see enough commercial value in the variants to warrant a premium, and that combined with plans to degrade existing regulated service, breached the good faith obligation.

The regulator has given parties until Sept. 18 to comment on the legal opinion.

In a separate statement, Chorus said the commission's legal advice appeared to be "inconsistent with the regulatory guidance that is available" and that it highlights the complexity of the regulatory framework.

Shares of Chorus were unchanged at $1.78, and have climbed 24 percent this year after being punished in 2013 during the height of regulatory uncertainty regarding its copper-based services.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Net Annual Migration Passes 71,000

A record 71,300 more migrants arrived in New Zealand than left in the January 2017 year, Statistics New Zealand said today. This surpassed the previous annual record set in December 2016. More>>

ALSO:

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news