The Commerce Commission has today released its first paper for fibre price-quality and information disclosure regulation. This paper sets out the proposed process and approach to regulating telecommunications companies that provide fibre access services in New Zealand.

From 1 January 2022, Chorus, Enable Networks, Northpower and UltraFast Fibre will be subject to new forms of regulation under the Telecommunications Act. The Commission’s paper details its proposed high-level approach and process to determining the information disclosure and price-quality regulations these companies will be subject to.

“The purpose of this paper is to set out our early thinking on how we approach the major aspects the new regulations will cover. This includes the type of information providers should publicly disclose and how we would set the amount of revenue Chorus can recover and the quality standards it must meet,” says Telecommunications Commissioner Tristan Gilbertson.

The price-quality and information disclosure regulations will give effect to and build on the input methodologies for fibre services, such as how the Commission must calculate the cost of capital. To date, the Commission has been consulting on these input methodologies which are due to be finalised late 2020.

“We recognise that this form of regulation is familiar to New Zealand’s gas pipeline and electricity lines companies but is new for telecommunications services,” Mr Gilbertson says.

“We want to hear as many views as we can, particularly from the wider telecommunications sector and consumer groups, to help shape our approach and processes from the beginning and inform how this regime will evolve over time.”

A copy of the paper can be found on the Commission’s website.

Submissions close on 14 October 2020.

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