Telecom resale to be investigated

Commerce Commission will undertake study

The Commerce Commission has announced that it will carry out an

investigation into whether the services Telecom provides to other telecommunications companies to be resold should be deregulated.

Retail services such as Homeline are offered by Telecom to wholesale customers to resell at a discount to the retail price.

"The Commission is satisfied that there are reasonable grounds to commence an investigation," says Telecommunications Commissioner Ross Patterson in a Commerce Commission statement to the NZ Stock Exchange.

Retail services such as Homeline are offered by Telecom to wholesale customers to resell at a discount to the retail price, Patterson says.

"Telecom is providing these services on commercial terms without being obliged to do so by specific Commission decisions. There are also a significant number of Telecom's resale products that have had minimal or no uptake by other telecommunications companies."

The Commerce Commission statement notes that investigation will examine whether regulation should be removed, or amended to streamline the number of services covered.

The Commission will give public notice at the commencement of the investigation.

The statement notes: resale services offer other telecommunications providers the ability to purchase a service on a wholesale basis for the purpose of reselling that

same service, either alone or in combination with other services or features to end-users in direct competition with Telecom, the access provider of the resale services.

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Tags Ross PattersonCommerce Commissionresaletelecom

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