Telco Act: Commission to investigate pricing

Telecommunications Act: Commission to investigate pricing principle

The Commerce Commission is investigating whether the formula under the Telecommunications Act for setting initial prices for bundled service offerings should be amended.

The Commission's investigation follows a request from Minister of Communications, Hon Paul Swain. Under the Act, the Minister can request that the Commission investigate whether or not Schedule 1 should be altered.

The Commission is satisfied that there are reasonable grounds to commence an investigation. The Act states the Commission must make reasonable efforts to complete the investigation not later than 120 working days after the date of the public notice.

The Commission has confirmed its decision to investigate in today's Gazette publication.

Background Telecommunications Act 2001: Part 1 Procedure for designated services or specified services (except specified services that are to become designated services)

1. Commission's investigation

(1) The Commission may, on its own initiative or if requested to do so in writing by the Minister, commence an investigation into whether or not Schedule 1 should be altered in any of the ways set out in sections 65 to 67 (the proposed alteration) if

(a) the Commission is satisfied that there are reasonable grounds for an investigation into the matter; and

(b) in respect of an alteration of a kind set out in section 65, it is not less than 1 year before the expiry of the service.

(2) If an investigation has been requested by the Minister and the requirements set out in subclause (1)(a) and (b) have been met, the Commission must commence the investigation not later than 10 working days after receiving the Minister's written request.

(3) The Commission must give public notice of the commencement of the investigation.

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