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Cost of phone TSO estimated at $62.8m

By Paul McBeth

Monday 24th November 2008

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The Commerce Commission estimates the cost of delivering landline services to outlying rural areas at $62.8 million for the 2006/07 year.

Under the Commissionís telecommunication service obligation (TSO) determination for the Local Residential Telephone Service, Telecom is able to recover some its costs of providing affordable phone lines. With Telecom making up approximately 70% of the $4.2 billion domestic market, it will likely be looking to recoup around $19 million from its competitors.

Under the cost allocation model, costs are shared amongst Telecom, Vodafone, TelstraClear, WorldxChange, Compass, CallPlus, Ihug, Woosh and Teamtalk.

Interested parties have until January 9 2009 to make a submission to the commission.

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