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Notice Type
Authorities/Other Agencies of State
Notice Title

Notification of Draft Input Methodologies Applicable to Fibre Fixed Line Access Services

The Commerce Commission (“Commission”) gives the following notices under Part 6 of the Telecommunications Act 2001 (“Act”).

Notice of Draft Input Methodologies

Pursuant to section 179(2)(a) of the Act, the Commission gives notice that it has published draft input methodologies applicable to Fibre Fixed Line Access Services (FFLAS) on the matters described in section 176(1)(a)–(b) and (d) of the Act, being:

  • methodologies for evaluating or determining:
    • cost of capital;
    • valuation of assets, including depreciation, and treatment of revaluations;
    • allocation of common costs (for example, between activities, businesses, access seekers, regulated services, or geographic areas); and
    • treatment of taxation;
  • methodologies on quality dimensions; and
  • methodologies for capital expenditure projects, including the following;
    • requirements that must be met by the regulated FFLAS provider, including the scope and specificity of information required, the extent of independent verification and audit, and the extent of consultation and agreement with other parties (including access seekers or end-users);
    • the criteria the Commission will use to evaluate capital expenditure proposals; and
    • timeframes and processes for evaluating capital expenditure proposals, including what happens if the Commission does not comply with those timeframes.

Copies of the draft input methodologies, and the supporting draft reasons paper, are available on the Commission’s website via the Commission’s fibre IMs project page at: https://comcom.govt.nz/regulated-industries/input-methodologies/projects/fibre-input-methodologies#projecttab, and for inspection free of charge, or for purchase at a reasonable price, at the Commission’s Office at 44 The Terrace, Wellington (during ordinary office hours).

The Commission is seeking submissions from interested persons on these draft input methodologies by 5.00pm on 28 January 2020, and following submissions, we invite cross-submissions by 5.00pm on 12 February 2020. Submissions on the draft input methodologies can be made here: https://comcom.govt.nz/file-upload-form-folder/file-upload-form.

Notice of Intention to Incorporate Material by Reference into Input Methodologies

The Commission intends to incorporate the following material by reference into the input methodologies determination applicable to FFLAS: New Zealand Equivalent to International Accounting Standard 24, Related Party Disclosures (NZ IAS 24) (issued by the New Zealand Auditing and Assurance Standards Board in November 2009, incorporating amendments to 31 December 2015) (NZ IAS 24).

Pursuant to section 223(b) of the Act, where the Commission wishes to incorporate material by reference into an input methodology, the process for incorporation by reference in Schedule 5 of the Commerce Act 1986 applies with any necessary modifications.

In accordance with clause 7(2)(d) of Schedule 5 of the Commerce Act 1986, the Commission gives notice that:

Dated at Wellington this 11th day of December 2019.

COMMERCE COMMISSION