Menu
ComCom took “straight down the middle” approach to pricing

ComCom took “straight down the middle” approach to pricing

“It's a bit like an old-fashioned table mortgage. It was a standard method.”

Despite various criticisms of the Commerce Commission's draft pricing review determination for Chorus' unbundled copper local loop service, Telecommunications Commissioner Stephen Gale says the review took a “straight down the middle” implementation.

“It's a bit like an old-fashioned table mortgage,” he says. “It was a standard method.”

One critic, Woodward Partners, has suggested that the draft prices have been carefully managed to fall into a desired zone.

“People will infer but they've glossed over the UBA price drop that stayed down when we did the modelling,” Gale says. “The other bit has gone up. They're two different calculations.

“Tera's model was crawled over by both sides.”

Tera Consulting, a European company, was employed to construct a full model of a hypothetical efficient operator's costs from bottom up using detailed topographical data combined with local costing expertise from Beca.

The commission also sought specialised expert advice from Professor Ingo Vogelsang, Dr James Every-Palmer, Dir Martin Lally and Oxera Consulting.

Gale says the budget for the whole project, including internal staff, is $2 million and he remains confident that won't be exceeded.

He concedes, however, that the commission needs to get moving on making a decision on backdating.

A paper resolving the timing of that will be out before Christmas, he says. It will also cover non-recurring charges.

The commission had gone to tender before choosing Tera. “It's a major industry in Europe,” Gale says. “The other parties have theirs (European consulting companies)."

Gale says it took a year to reach the draft decision because “we needed to consult with the industry about how to go about it."

Some parties have sought an extension to the period for commentary on the draft decision but Gale says he expects that a planned conference in March is still feasible.

“We're expecting a lot of debate, especially around things like the cost of trenching but we don't expect any radical changes," he adds.

A final determination will be made next year.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags Commerce CommissionChorus

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments