RFPs lay ground for telecomms commissioner

The Commerce Commission has begun preparing the ground for the appointment of the telecommunications commissioner and his/her team.

The Commerce Commission has begun preparing the ground for the appointment of the telecommunications commissioner and his/her team.

It has issued four requests for proposal to develop methodologies which the commissioner is expected to use as a guide in resolving disputes and other problems.

The RFPs cover four controversial aspects of the pricing of telecommunications:

  • The application of a total service long run incremental cost (TSLRIC) pricing methodology
  • Conducting an international benchmarking review of interconnection and retail-minus prices against comparable regimes
  • The verification and allocation of telecommunications service obligations (TSO) costs
  • A review of the wholesale (retail-minus) pricing regime.
Part 3 of the Telecommunications Bill requires the commission, in the person of the commissioner, to determine the cost incurred for the maintenance of the TSO and the allocation of payments to the parties concerned. Telecom has long maintained that it is unfairly saddled with the cost of providing free local calling, especially in the light of long internet sessions.

Establishment of guidelines on the wholesale pricing regime will help the commissioner make determinations, on the request of access seekers, on services or bundles of services that are not price-capped, the Commerce Commission says.

The closing date for submission of proposals is October 5.

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