Commerce Commission seeks submissions on changes to UBA pricing scheme

Public input sought on proposed changes to pricing methodology

The Commerce Commission is seeking submissions on proposed changes to its methodology for calculate Telecom’s unbundled bitstream access (UBA) price.

The price is a regulated service under the Telecommunications Act 2001.

According to a statement from the Commission, "The changes proposed in today’s draft determination are the result of two concurrent reviews being carried out by the Commission.

"The UBA service allows telecommunications companies to supply broadband services to retail customers without the need to replicate Telecom’s copper local loop.

"The Commission is seeking submissions on its preliminary views that:

1) The methodology to calculate calling discounts should be changed to more accurately reflect the discounts that Telecom customers receive when purchasing a bundle of services; and

2) The retail value should be used to calculate the data transmission component of the UBA price calculation rather than a cost-based value.

The Commission also proposes to update its calculation of Telecom’s internet service provider (ISP) charges. The approach to overage and avoided cost discount remains unchanged.

Submissions should be made to the Commission by 5pm Monday 16 May 2011.

A copy of the draft determination can be found on the Commission’s website.

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