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


TSO Update: Net cost calculation & TSO instrument

TSO Update: Net cost calculation & TSO instrument

The Commerce Commission is required under the Telecommunications Act to determine annually the net cost to Telecom of providing local residential telephone services under Telecom's Telecommunications Service Obligation (TSO), and to apportion that cost across both Telecom itself and other network operators.

As an input to the Commission's process, Telecom is required under the Act to provide the Commission with its own net cost calculation not later than 60 working days after the end of its financial year. Telecom provided its TSO calculation to the Commission within the statutory timeframe on Friday 20 September.

Telecom's calculation of the net cost of complying with the TSO for local residential telephone service, for the period from 20 December 2001 (the commencement date of the Act) to 30 June 2002 (a period of 6 months and 12 days), was $226.5 million. The Commission has requested Telecom to also supply a revised calculation in accordance with parameters set by the Commission. Telecom has agreed to provide that revised calculation by October 18.

Both Telecom calculations will be considered by the Commission in making its decision on the net cost figure to be used to apportion the cost across the industry.

Assessment of compliance with TSO instrument Telecom is required under the Act to provide the Commission with an annual assessment of compliance with the service quality measures defined in the TSO instrument.

The Commission in turn is required to review Telecom's compliance with the TSO instrument, and notify Telecom and the Minister of Communications in writing of any non-compliance by Telecom with the TSO instrument.

"The Commission has received Telecom's assessment," confirmed Osmond Borthwick, Network Access Manager.

"The Commission considers that the process for the measurement, reporting and auditing of the TSO service quality can be significantly improved and will work on these issues with Telecom over the next reporting period.

"Based on the information provided by Telecom, the Commission has notified the Minister and Telecom that it has not been demonstrated to the Commission's satisfaction that Telecom is in compliance with the TSO instrument for the period from 20 December 2001 to 30 June 2002. Further discussions will be held between the Commission and Telecom."

Background information – Telecommunications Act 2001, Section 80 Assessment of compliance with TSO instrument, Not later than 60 working days after the end of each financial year of a TSP, under a TSO instrument, the Commission must - a) Assess the TSP's compliance with the TSO instrument during that financial year in accordance with any process set out in the TSO instrument; and b) Notify the TSP and the Minister in writing of any non-compliance by the TSP with the TSO instrument.

Section 83 Calculation of net cost and auditor's report must be given to Commission - Not later than 60 working days after the end of each financial year of a TSP under a TSO instrument that does not contain a specified amount, the TSP must provide to the Commission- a) calculations of the net cost of complying with the TSO instrument during the financial year; and b) a report prepared by a qualified auditor that includes a statement of whether or not the calculations comply with - I. any prescribed requirements relating to those calculations; or II. if there are no prescribed requirements, any requirements of the Commission.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>


Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>