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Investigation into telecommunications pricing

Investigation completed into telecommunications initial pricing principle

The Communications Minister Paul Swain has released the Commerce Commission's final report from an investigation into the initial pricing principle (IPP) for wholesale service bundles.

The report considers whether the IPP for the designated access service "Bundle of retail services offered by means of Telecom's fixed telecommunications network" (wholesale service bundles) in the Telecommunications Act 2001 should be amended.

The Minister accepts the Commission's recommendation that the IPP be altered as described in the report, and has asked officials to make the necessary changes to the designated service under the Telecommunications Act 2001.

"The Commission's recommendation satisfactorily addresses the present discrepancy in the IPP for the pricing of a price capped service that is part of a bundle of services," says Mr Swain.

In January this year the Minister asked the Commerce Commission to commence an investigation of the initial pricing principle.

The Commission released a draft report for comment on 1 May 2003.

An Order in Council is required to implement a change in the IPP for a designated service under the Telecommunications Act 2001.

Copies of the final report can be downloaded from the Commerce Commission web site. www.comcom.govt.nz

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