Joyce tells Chorus to tighten up transparency of copper network deed for regulators

Thursday 6th October 2011

Communications Minister Steven Joyce sent back Chorus’s deed of undertaking over the copper network to Telecom Corp., saying it needs better transparency for the regulators.

Joyce said the deed didn’t meet the Telecommunications Amendment Act, and needed greater transparency on the equivalence of inputs, and the level of disclosure to the Commerce Commission and Crown Fibre Holdings.

In a letter to Telecom chief executive Paul Reynolds, he said the qualification letting Chorus withhold information relating to internal ordering, charging, or billing related to services was too broad and risked undermining the act.

“We need to get the deeds of undertaking right, while at the same time recognising the changes that will occur from the structural separation of Telecom,” Joyce said in a statement. “The government has not imposed operational separation within Chorus. However, I have asked for clarification of how the equivalence of inputs standard applies within Chorus, which will not have separate business units."

Chorus, which will soon be a stand-alone entity provided Telecom shareholders approve a demerger, was tasked with setting out the requirements for open access to its copper network if structural separation goes ahead.

The network unit has until Oct. 21 to prepare and submit an amended deed.

Shares in Telecom rose 0.4% to $2.59, and have climbed 20% this year.

(BusinessDesk)

BusinessDesk.co.nz

Comments from our readers

No comments yet