Sharechat Logo

Regulator seeks industry views on Chorus line price, suggests speedier process, backdating final price

Friday 6th December 2013

Text too small?

The Commerce Commission is consulting with the telecommunications industry over what price Chorus can charge rivals to access its copper telephone lines, suggesting a review process could be accelerated and the final price backdated.

The Commerce Commission is reviewing the price by building a full cost model on Chorus's unbundled local loop, which lets retailers rent the lines for voice and broadband services. That differs from the unbundled bitstream access services, currently in dispute, which lets retailers use Chorus's software and electronics to supply broadband services without having to build their own.

The process is complex and can take years and the regulator is seeking industry views on whether a shorter process may be desirable even if it involves trade-offs, regulation manager John Hamill said in a statement.

The regulator is also seeking views on whether it should backdate the final price, which is favoured by the Court of Appeal.

The Commission is holding an informal industry workshop this month to work through some of the key issues, it said.

Chorus sought the final pricing principle after the regulator set the geographically averaged price at $23.52 per month per line. The change was the result of the regulator adopting a new methodology to set the prices after Chorus was spun out of Telecom in 2011.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: Blue-chip stocks Meridian, A2 lead market lower
NZ dollar rises on Brexit hopes, rate cut reassessment
Three not failing, just needs a new owner - MediaWorks CEO
Major investors back new CBL class action targeting directors
Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite

IRG See IRG research reports