New Zealand - More backhaul links used for unbundled local loops are designated competitive

[commerce commission] The Commerce Commission today announced that 88 unbundled copper local loop (UCLL) backhaul links are now competitive. The decision is a result of a review by the Commission into whether Telecom faces competition in providing this service.

“The number of competitive links has increased because of UCLL unbundling and the consequent deployment of backhaul links by alternate providers,” said Dr Ross Patterson, Telecommunications Commissioner. “The Commission has also concluded that TelstraClear provides a competitive constraint on Telecom on all links where it has fibre cables within 2kms of a Telecom exchange,” said Dr Patterson.

Backhaul services provide Telecom’s competitors with access to transmission capacity on specific routes between Telecom's local exchanges and the competitors’ networks. This allows competitors to provide communication services, such as voice and broadband to households, without having to replicate Telecom’s network. Where the Commission finds that a link is competitive, the terms of the UCLL backhaul standard terms determination (STD) will not apply. By contrast, where Telecom is found to face limited competition on a link, the terms of the UCLL backhaul STD will apply.

As part of the review, the Commission considered whether the lack of the ability to aggregate backhaul for multiple providers is preventing competition from developing in the UCLL backhaul markets. “The Commission concluded that Chorus’s recently launched commercial co-location offer does not restrict competition from developing in backhaul markets,” said Dr Patterson.

More UCLL backhaul links are competitive, says Commerce Commission