Tuesday, March 08, 2011

New Zealand - Regulator has begun a review of wholesale unbundled bitstream pricing

[comcom] The Commerce Commission has launched a review of Unbundled Bitstream (UBA) broadband pricing. This review will consider UBA pricing components that are not included in a review of UBA data transmission costs currently being undertaken by the Commission.

“The Commission is of the view that other components that affect the UBA price should be reviewed as well. This decision is a result of submissions we received throughout the current review’s consultation phases as well as the Ministry of Economic Development’s release of the Supplementary Order Paper to the Telecommunications Amendment Bill on 16 February 2011. This Bill, if passed, will lock in the UBA price for three years,” said Dr Ross Patterson, Telecommunications Commissioner.

Under section 30R of the Telecommunications Act 2001, the Commission may undertake a review of all or any of the terms specified in a standard terms determination, in this case the UBA standard terms determination.

In order to consider the wider issues raised by interested parties, the Commission has launched the new section 30R review to be conducted concurrently with the data transmission cost review. The new review will cover (but is not limited to):

* how overage is treated;
* the ISP charge; and
* the avoided retail costs discount.

“The Commission is conscious that a decision needs to be made in a timely manner given the importance of the UBA price to the companies involved but is equally conscious of the importance of fully addressing all issues raised in submissions,” said Dr Patterson.

Commerce Commission to take wider look at UBA pricing

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