Cost of phone TSO estimated at $62.8m

By Paul McBeth

Monday 24th November 2008

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 Commission�s 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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