On 13 April 2005, the Commerce Commission (“the Commission”) released its draft determination, under section 49 of the Telecommunications Act 2001 (“the Act”), reviewing the price for interconnection between the network of Telecom New Zealand Limited and the network of TelstraClear Limited, which was set by the Commission’s determination of 5 November 2002 (Decision 477).
Decision 477 set the initial price for the two designated services in Schedule 1 of the Act: Interconnection with Telecom’s fixed PSTN and interconnection with a fixed PSTN other than Telecom’s, at 1.13 cents per minute.
The parties to Decision 477, Telecom and TelstraClear, applied to the Commission, under section 42 of the Act, for the price set for interconnection with Telecom’s fixed PSTN to be reviewed. Telecom also applied for the price set for interconnection with a fixed PSTN other than Telecom’s
to be reviewed.
The Commission has calculated the price of interconnection to be 1.00 cent per minute, using a forward-looking cost model described as TSLRIC or Total Service Long-run Incremental Cost.
The Commission has proposed a duration for the determination extending from 1 June 2002, the effective date of commencement of Decision 477, until the date of public release of the Commission’s final determination.
The Commission is seeking submissions from interested parties on the draft determination.
All submissions must be received before 12.00 midday on
9 May 2005.
The public version of the Commission’s pricing review determination can be downloaded from the Commission’s web site at:
http://www.comcom.govt.nz/IndustryRegulation/ Telecommunications/Overview.aspx