Com. Com. - Cost of Phone TSO at NZ$62.8 mln

Commerce Commission Estimates Cost of Phone TSO at NZ$62.8 mln

By Paul McBeth

Nov. 24 – The Commerce Commission estimates the cost of delivering landline services to outlying rural areas at NZ$62.8 million for the 2006/07 year.

Under the Commission’s telecommunication service obligation (TSO) determination for the Local Residential Telephone Service, Telecom Corp. is able to recover some its costs of providing affordable phone lines. With Telecom making up approximately 70% of the NZ$4.2 billion domestic market, it will likely be looking to recoup around NZ$19 million from its competitors.

Under the cost allocation model, costs are shared amongst Telecom, Vodafone, TelstraClear, WorldxChange, Compass, CallPlus, Ihug, Woosh and Teamtalk.

Interested parties have until Jan. 9 2009 to make a submission to the commission.

(Businesswire)

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