Next step underway for bitstream and local loop access
Published04 Apr 2007
The Commerce Commission today issued notices requiring Telecom to submit standard terms proposals for the unbundled local loop and bitstream access services. The notices require Telecom to specify the non-price terms and conditions on which it proposes to provide access to these services to other operators.
"The process is moving ahead promptly," says Telecommunications Commissioner Douglas Webb.
"The issuing of the notices comes after the Commission held industry scoping workshops on 21 and 22 March."
"This is an important step towards a standard terms determination for each service."
A standard terms determination will contain both non-price and price terms and will apply for all operators wanting access to Telecom's network in order to provide voice and/or broadband services. Price terms for access to the services must be set by the Commission.
Telecom must submit the unbundled local loop standard terms proposal nine weeks after Easter (by 12 June 2007) and the bitstream standard terms proposal one month after that date (by 11 July 2007).
"Timeframes were set after discussion with industry at the workshops. These timeframes will provide Telecom and access seekers with an opportunity to develop and discuss the non-price terms of access prior to Telecom submitting the proposals to the Commission for assessment," says Mr Webb.
"This is a consultative process and the Act specifies a number of steps to move through before the access determinations will be finalised. It is hoped that opportunities for negotiation and agreement now will save time later in the determination processes."
The Telecommunications Act specifies that, following receipt of a standard terms proposal, the Commission must seek submissions from access seekers before issuing a draft standard terms determination for further industry consultation, after which a final determination will be made.
Background
The copper local loop or local loop unbundling (LLU) refers to the standard copper pairs (telephone line) that run from a telephone exchange to an end-user's home. Access to the LLU allows other operators to provide voice and/or broadband services.
Access to Telecom's bitstream services will allow other operators to provide voice and broadband services or broadband services where a consumer is not required to have a telephone service (i.e. 'naked' DSL).
On 22 December 2006, the Telecommunications Act was amended to incorporate a process for the Commission to make a determination (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;
· Commission issues draft standard terms determination;
· Parties to provide submissions on the draft standard terms determination;
· Commission issues standard terms determination.
The standard terms determination processes for LLU and bitstream services were initiated on 22 February 2007. A standard terms determination process for LLU co-location services was initiated on 28 March 2007 (co-location services enable other operators to co-locate equipment in Telecom's exchanges so that they can make use of the LLU to provide voice or broadband data services to consumers).
