TelstraClear Limited and Telecom New Zealand Limited have independently applied to the Commerce Commission for a pricing review of the Commission's wholesale determination under section 42 of the Telecommunications Act 2001. The Commission released its determination relating to the supply of services on a wholesale basis between the two parties on 12 May 2003.
Under section 42 of the Act, a party to a determination can request the Commission to review the part of the determination that relates to the price to be paid for the services.
The re-determination of the price to be paid for the service is based on the calculation of the average or best retail price of the designated services and the level of discount to be applied.
In assessing the pricing review applications, the Commission is required to apply the final pricing principles specified in Part 2 of Schedule 1 of the Act for retail services offered by means of Telecom's fixed telecommunications network. The Commission has provided copies of the applications to the parties and has requested comments. The Commission must prepare a draft determination as soon as practicable.
The Commission's original wholesale determination (released on 14 May) continues to have effect and is enforceable pending the issuing of a price review determination.
