TSO reworking delayed

The deadline for Telecom to re-submit its estimates for the telecommunication service obligation (TSO) has been extended to November 8 at Telecom's request.

The deadline for Telecom to re-submit its estimates for the telecommunication service obligation (TSO) has been extended to November 8 at Telecom's request.

Telecom is required by the Telecommunications Act to provide the commissioner with "an annual assessment of compliance with the service quality measures defined in the TSO instrument" according to the telecommunications commissioner's office. Telecom has done so, claiming the TSO costs the company $226.5 million over six months.

The commissioner told Telecom to re-do its sums and gave the incumbent telco a deadline of October 18, however that has now been extended after Telecom asked for more time. Telecom public affairs manager John Goulter says the company simply needed more time to complete the full assessment.

"We and the commission had thought we could complete it by then. In the end we found there was quite a bit of work involved and so we said it would be better to reach a complete calculation and they agreed."

The TSO replaced the Kiwi Share agreement signed when Telecom was first sold off in the early 1990s. The Kiwi Share required Telecom provide free local calls, ensured that rural users weren't charged more than urban and that the cost of line rental didn't increase by more than the standard of living each year.

The TSO covers a number of areas, including how much it costs Telecom to provide local residential phone service. Costs will be apportioned out to major industry players according to market share.

Telecom has claimed that it has created "the most accurate and detailed model in the world" and that it worked closely with PricewaterhouseCoopers in London on the model which was then audited by KPMG. Telecom has indicated that any new figures will be only around 5% different from the previously submitted estimate.

As IDGNet reported last month (TSO - expect a long haul to a solution) telco analysts are not anticipating an early resolution to the issue.

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