The Commerce Commission (“Commission”) gives public notice under section 179(1) of the Telecommunications Act 2001 (“Act”) that it is:
- amending its indicative process and time frames outlined in its Notice of Intention dated 29 April 2021; and
- considering further potential amendments to its input methodologies for fibre fixed line access services (“fibre IMs”).
The Commission is considering further amendments to the fibre IMs to:
- provide for an alternative methodology with equivalent effect or substantially the same effect which may be applied in determining the financial losses;
- correct errors and improve the workability of provisions related to the initial RAB;
- correct for the effect of tax losses;
- correct errors in the present value benefit of Crown financing formulae, as used to determine the financial losses;
- clarify other allocator types that may be applied by the Commission in determining the financial losses;
- correct errors in formulae for “UFB cost allocation adjustment cash flow”, as used to determine the financial losses;
- correct errors in formulae for ‘revenue date compounding factor’, as used to determine the financial losses; and
- correct errors and improve the workability of certain Cost Allocation and Cost of Capital provisions.
The full text of the notice, which includes more detail on the further potential amendments as well as the indicative process and updated time frames, is available on the Commission’s website: https://comcom.govt.nz/regulated-industries/telecommunications/projects/fibre-input-methodologies.