The Commerce Commission today released a discussion paper on Total Service Long Run Incremental Cost (TSLRIC) as part of its responsibilities under the Telecommunications Act 2001.

TSLRIC is a forward-looking cost based methodology that may be used by the Commission when making a pricing review determination for certain interconnection services. Interconnection allows calls to pass from a customer on one network to a customer on another. Interconnection payments are made between telecommunications operators.

The objective of this paper is to define acceptable parameters and assumptions in the application of TSLRIC to pricing review determinations.

The Commission worked with Melbourne based Frontier Economics to prepare this discussion paper.

The Commission invites interested parties and industry participants to make written submissions on the TSLRIC discussion paper. After considering the submissions, the Commission will hold a conference in Wellington on 9-12 September. The conference provides the opportunity for submitters to make oral presentations, and for the Commission to ask questions based on those submissions.

Submission details

The closing date for submissions, together with electronic versions, is 16th August. Electronic versions should be emailed to telecommunications@comcom.govt.nz, and will be published on the Commission's website.

Hard copies of submissions must clearly identify which report they relate to, and be posted to:

Commerce Commission

PO Box 2351

Wellington

Media contact: Osmond Borthwick, Manager, Network Access Group

Phone work (04) 924 3667

Jackie Maitland, Communications Manager

Phone work (04) 924 3708, mobile 029 924 3708