Menu
ComCom pushes final decision on UBA, UCLL prices to April 2015

ComCom pushes final decision on UBA, UCLL prices to April 2015

ComCom’s original intension in March this year was to produce a draft determination by August and complete a final decision by 1 December 2014.

The Commerce Commission (ComCom) has revised its timelines for decisions related to wholesale prices under the final pricing principle (FPP), and is now aiming for a draft decision on unbundled bitstream access (UBA) and unbundled copper local loop (UCLL) by 1 December 2014, and a final decision by 1 April 2015.

ComCom’s original intension in March this year was to produce a draft determination by August and complete a final decision by 1 December 2014. It has decided to change that time frame to allow for matters raised in the submissions from Chorus, Telecom, Vodafone, Callplus, Orcon and Internet NZ.

According to ComCom, the telco retailers have all expressed serious concerns in their submissions about their ability to engage effectively on the technical complexities of the FPPs if consultation were confined to the period after a draft determination.

“We take the industry’s concerns seriously and believe that the benefits of ensuring effective industry input outweigh any extended period of uncertainty,” said telecommunications commissioner, Stephen Gale.

“We have decided to allow more time. We will be releasing an additional consultation paper in early July with the Commission’s preliminary decisions on a number of modelling and conceptual topics.”

Even as the Commission stated that Chorus had asked for the body to consult on preliminary decisions, the latter put out a statement in response to ComCom’s decision, expressing disappointment over the delay.

"While we acknowledge the FPP processes are challenging, we are very disappointed that the timetabling aims announced by the Commission in February have now been changed,” said Vanessa Oakley, Chorus general counsel. “We agreed with the Commission's statements in March that prompt completion of those processes provided the best certainty for everyone.”

“We also believed that appropriate levels of consultation could be undertaken within the original timeframe.

“The implementation difficulties with benchmarking are well known. The High Court has described it as a "quick and cheap" methodology. The Act says benchmarked prices can be reviewed by TSLRIC cost modelling."

Read more: Competing solely on price is not wise: Teradata

Chorus stated that the delays mean that the UCLL and UBA benchmarked prices will both be in the market from 1 December 2014 because the cost modelling hasn't been completed.

“We note that the Commission does not have the option to take more time to complete cost modelling processes but also hold the benchmarking prices from coming into effect until it completes them. However it can backdate, and has in a recent decision.

"Uncertainty increases for everyone today. Unpredictability on process and outcomes remains a challenge for Chorus and our retail service provider RSP customers,” she said

Applications for the FPP processes were made in February 2013 and December 2013 for UCLL and UBA respectively

Read more: CommComm seeks submissions regarding UCLL and UBA pricing


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags VodafonepricingtelecomOrconComComChorusCommerce CommissioncallplusInternet NZubaunbundled bitstream accessUCLLunbundled copper local loopFPPfinal pricing principlefinal pricing principle (FPP) process

Brand Post

Featured

Slideshows

Reseller News Platinum Club celebrates leading partners in 2019

Reseller News Platinum Club celebrates leading partners in 2019

The leading players of the New Zealand channel came together to celebrate a year of achievement at the annual Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months.

Reseller News Platinum Club celebrates leading partners in 2019
Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosted its second annual alumnae breakfast for the Women in ICT Awards in New Zealand, designed to showcase the leading female leaders in the industry. Held at The Cordis in Auckland, attendees came together to hear inspiring keynotes and panel discussions, alongside high-level networking among peers. Photos by Gino Demeer.

Reseller News hosts alumnae breakfast for Women in ICT Awards
Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
Show Comments