Commerce Commission receives applications to review UCLL pricing

The commission had received applications to review the price in accordance with the FPP from Chorus, Telecom, Callplus, Kordia and Vodafone NZ.

The Commerce Commission has released a consultation document for the final pricing principle (FPP) of the Chorus unbundled copper local loop (UCLL) service.

The commission had received applications to review the price in accordance with the FPP from Chorus, Telecom, Callplus, Kordia and Vodafone NZ. It is now a requirement under the Telecommunications Act 2001 to review the price of the UCLL Service by building a full-cost model.

The UCLL service enables telecommunications providers to rent Chorus’ copper telephone lines to provide voice and broadband services to consumers.

“We are interested in whether there are circumstances in New Zealand in which a shorter process might be feasible or desirable. This suggests that submitters should consider the trade-offs that may be involved in a shorter process,” says regulation general manager John Hamill.

Another issue the Commission is seeking feedback on is the possible backdating of the reviewed price on completion of the process.

Hamill says the Court of Appeal’s observations favour backdating.

“However, we are aware that this may have a significant impact on parties depending on the outcome of this review.”

Because of the complexity of technical issues around modelling, the commission will be holding an informal industry workshop in mid December to work through some of the key issues highlighted in the discussion document.

The commission received an application from Chorus earlier this month for a final pricing review of the UBA Service. The commission says in a statement that it intends to issue a process and issues paper on the UBA FPP early next year. It has asked for views on how the UBA FPP affects this process.

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Tags vodafone NZUCLLfinal pricing principlecallplusCommerce CommissionChorusunbundled copper local looptelecomFPPKordia

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