Issued 14 October 2003

The Commerce Commission today released an amended draft report on unbundling of Telecom's local loop and its fixed Public Data Network. The draft report includes amendments to certain input figures in the cost-benefit analysis, which forms part of the Commission's analysis.

Although the amendments reduce some of the benefits reported, the net benefits from unbundling remain substantial.

The Commission has not altered its draft recommendations contained in the report, including the Commission's preliminary view to designate the full unbundling of Telecom's local loop network and its fixed Public Data Network. The Commission's preliminary view is to not recommend regulation of bitstream access or line sharing, both more limited forms of unbundling of the local loop network.

The original draft report was published on 18 September 2003. The Commission released material on the model underlying the cost-benefit analysis and some adjustments to the figures in the draft report on 8 October 2003. The amended draft report, appendices and further material on the cost-benefit model all published today replace these documents.

The Commission is seeking submissions on the draft report and has revised the closing date for submissions to 29 October 2003. The Commission will hold a public conference in Wellington between 11 and 14 November in preparation for its final recommendation to the Minister of Communications in December.

The draft report is available at http://www.comcom.govt.nz/telecommunications/localloop.cfm

Submission details

The Commission welcomes submissions on the draft report from interested parties. The closing date for submissions is 29 October 2003. The Commission will hold a public conference on the draft report from 11 to 14 November in Wellington.

Electronic versions of submissions should be e-mailed to telecommunications@comcom.govt.nz. These will be published on the Commission's website. Hard copies of the submissions should be posted to:

Unbundling Draft Report

Network Access Group

Commerce Commission

PO Box 2351, Wellington

Further information

The amendments to the draft report published today are highlighted within the report. The Commission has also published an amended version of the cost-benefit report in Appendix 2 to the draft report. In addition, a note has been published on the website 'Further Information on the cost-benefit-model, 14 October 2003' which documents the changes to the cost-benefit model.

Media contact:

Osmond Borthwick, Manager Network Access Group

Phone work (04) 924 3667

Gail Kernohan, Communications Adviser

Phone work (04) 924 3709, mobile 029 924 3709