Having a TSO contribution levied on Walker Wireless may invalidate its business case for serving some remote regions, the company’s commercial and legal manager Nick Clarke told the Commerce Commission hearing.
The TSO structure should incorporate incentives to encourage the deployment of efficient new infrastructure, Clarke says. As presently proposed, the sharing of the TSO load among established and new providers constitutes a disadvantage to new entrants committed to building their own infrastructure, he says.
The company’s US investors are nervous about TSO payments, particularly if they are likely to be reassessed yearly, as is proposed. One solution, Clarke suggests, would be to tender out provision of service to economically non-viable customers allowing an efficient provider to meet the requirement with up-to-date technology.