Monday, June 06, 2011

New Zealand - Regulator has begun proceedings against Telecom NZ over bitstream access

[commerce commisison] The Commerce Commission is to issue proceedings alleging that Telecom is likely to have discriminated under the Telecom Separation Undertakings. The Commission alleges that Telecom failed to provide other telecommunications service providers with unbundled bitstream access (UBA) in conjunction with the sub-loop extension service (SLES), when it provided an equivalent service to its own retail business.

The UBA/SLES service was intended to allow other telecommunications companies to provide their own voice services from unbundled exchanges in conjunction with a Telecom broadband service from a roadside cabinet.

The Commission considers Telecom’s failure to provide this service to other telecommunications companies while providing it to its own retail business has caused serious harm to competition in telecommunications markets, deterred efficient investment by other companies in telecommunications infrastructure, and resulted in significant commercial gain to Telecom.

“Telecom’s failure to provide this service has reduced the financial feasibility of unbundling local exchanges, reduced the extent of unbundling, and consequently reduced the extent of retail competition,” said Dr Ross Patterson, Telecommunications Commissioner.

As the proceeding will be before the Courts, the Commission has no further comment.

Commerce Commission to issue proceedings against Telecom for discriminating against other telco companies

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