Telstraclear's Wholesale Residential Application

Media Release

Issued 24 December 2002-03 / 097

Commerce Commission decides to investigate TelstraClear's application for wholesale residential services

The Commerce Commission today announced it would investigate aspects of TelstraClear Limited's application for a determination of the terms for the wholesaling of residential services offered by Telecom New Zealand Limited.

TelstraClear applied to the Commission on 13 November requesting an access determination under the Telecommunications Act 2001 (the Act). The Commission has completed its assessment of TelstraClear's application, which included receiving comments from both Telecom and TelstraClear, and has decided to investigate aspects of the application.

The Commission will investigate the application so far as it concerns retail services offered by means of Telecom's fixed telecommunications network (FTN) to residential users, the price-capped residential local access and calling service offered by means of Telecom's FTN, and bundles of retail services offered by means of Telecom's FTN to residential users. The Commission has declined to investigate retail services offered by means of Telecom's FTN to residential users as part of a bundle of retail services.

Under section 25 of the Act, the Commission will next request written submissions from both parties on the application.

Background TelstraClear Limited applied for an access determination under the Telecommunications Act 2001 in regard to (a) price-capped residential local access and calling service offered by means of Telecom's fixed telecommunications network; (b) retail services offered by means of Telecom's fixed telecommunications network to residential users; (c) bundles of retail services offered by means of Telecom's fixed telecommunications network to residential users; and (d) retail services offered by means of Telecom's fixed telecommunications network to residential users as-part of a bundle of retail services.

Under section 24 of the Act, the Commission sought comment from both parties. Under section 25, the Commission must decide whether or not to investigate the application after receiving comments from the parties. The Commission has decided to investigate the TelstraClear application, so far as it concerns the designated services (a), (b) and (c) above. The Commission has decided not to investigate the application, so far as it concerns the designed service described at (d).

Section 25 of the Telecommunications Act 2001 states:

Commission must decide whether to investigate

(1) The Commission must make reasonable efforts to do the following
things not later than 10 working days after the date by which the
parties
may comment on the application:

a) decide whether or not to investigate the matter:
b) give written notice of its decision to the parties:
c) give public notice of its decision:
d) request the parties to the determination to make submissions on the matter by written notice to the Commission not later than 10 working days after receipt of the notice from the Commission.

(2) Subsection (1)(d) applies only if the Commission has decided under
subsection (1)(a) to investigate the matter.

ENDS

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