Standard terms initiated for local loop and bitstream backhaul services
Published30 Apr 2007
The Commerce Commission has today initiated the processes for determining standard terms of access for the backhaul services supporting Telecom's unbundled copper local loop and bitstream services.
Standard terms determinations will ensure that the necessary backhaul services are in place to support the unbundled local loop and bitstream services, enabling companies to offer functions such as Voice Over Internet Protocol (VOIP) and high speed broadband.
The Telecommunications Act requires the Commission to hold a scoping workshop as part of a standard terms determination process. The workshop date has not been set but is likely to be in May.
After that workshop, Telecom will be required to submit a standard terms proposal for each backhaul service, setting out the non-price terms of access to each backhaul service.
The Commission will be responsible for determining the main price of access for each service.
Potential access seekers will have the opportunity to comment on Telecom's standard terms proposals, after which the Commission will release a draft standard terms determination for each service. After further industry consultation the Commission will issue a final standard terms determination setting the price and non-price terms for each service.
Background
The 'unbundled bitstream access backhaul service' provides transmission capacity in Telecom's network between the trunk side of Telecom's first data switch that is connected to the end-user's building and the access seeker's nearest available point of interconnection.
The 'unbundled copper local loop network backhaul (telephone exchange to interconnect point) service' provides transmission capacity in Telecom's network between the handover point in Telecom's local telephone exchange and the access seeker's nearest available point of interconnection, for the purpose of providing access to, and interconnection with, Telecom's unbundled copper local loop network.
On 22 December 2006, the Telecommunications Act was amended to incorporate a process for the Commission to make a standard terms determination on which a designated access or specified service must be supplied by an access provider to all access seekers requesting the service. A standard terms determination will include:
non-price terms developed by an access provider, usually in consultation with access seekers; and
price terms for access to the service, set by the Commission.
It is intended that a standard terms determination should be comprehensive enough and contain sufficient detail so that there is no need for an access seeker and access provider to enter into a separate agreement for provision of the service within the specified timeframe.
The Act specifies that the following steps must take place before a standard terms determination may be made by the Commission:
Initiation of the determination process
At least one scoping workshop
Commission issues notice to provide a standard terms proposal
Access provider submits a standard terms proposal
Submissions from access seekers on the standard terms proposal
ommission issues draft standard terms determination
Parties to provide submissions on the draft standard terms determination
Commission issues standard terms determination
Standard terms determination processes for Telecom's unbundled copper local loop service and unbundled bitstream access service were initiated on 22 February 2007. Access to the unbundled local loop service and bitstream access service is necessary for other operators to provide voice and/or data (eg high speed broadband) services to consumers.
A standard terms determination process for the unbundled copper local loop (co-location) service was initiated on 28 March 2007 (a co-location service is necessary to allow access seekers to co-locate their equipment in Telecom's local exchanges in order to access the unbundled local loop service).
