Commerce Commission to take wider look at UBA pricing
Published03 Mar 2011
The Commerce Commission has launched a review of Unbundled Bitstream (UBA) broadband pricing.
The Commerce Commission has launched a review of Unbundled Bitstream (UBA) broadband pricing. This review will consider UBA pricing components that are not included in a review of UBA data transmission costs currently being undertaken by the Commission.
"The Commission is of the view that other components that affect the UBA price should be reviewed as well. This decision is a result of submissions we received throughout the current review's consultation phases as well as the Ministry of Economic Development's release of the Supplementary Order Paper to the Telecommunications Amendment Bill on 16 February 2011. This Bill, if passed, will lock in the UBA price for three years," said Dr Ross Patterson, Telecommunications Commissioner.
Under section 30R of the Telecommunications Act 2001, the Commission may undertake a review of all or any of the terms specified in a standard terms determination, in this case the UBA standard terms determination.
In order to consider the wider issues raised by interested parties, the Commission has launched the new section 30R review to be conducted concurrently with the data transmission cost review. The new review will cover (but is not limited to):
how overage is treated;
the ISP charge; and
the avoided retail costs discount.
"The Commission is conscious that a decision needs to be made in a timely manner given the importance of the UBA price to the companies involved but is equally conscious of the importance of fully addressing all issues raised in submissions," said Dr Patterson.
The Unbundled Bitstream Access (UBA) service enables access to, and interconnection with, that part of Telecom's fixed public data network that connects the end-user's building to Telecom's first data switch (or equivalent facility) other than a digital subscriber line access multiplexer (DSLAM). The UBA service allows telecommunications companies to supply broadband services to retail customers without the need to replicate Telecom's copper local loop.
On 12 December 2007, the Commission issued a standard terms determination (STD) under section 30M of the Telecommunications Act in respect of the designated access service of Telecom's UBA service.
In determining the price for the UBA service, the Commission deducts various avoided costs from the imputed retail price of DSL enabled services. One of these deductions involves the removal of national and international data transmission costs, as these costs are not part of the UBA service but are instead incurred by access seekers.
On 19 February 2010, the Commission commenced a review of the data transmission cost under section 30R of the Telecommunications Act 2001 and requested information from interested parties.
