The Commerce Commission has reaffirmed its current timetable to develop regulated unbundled local loop and co-location services. On Tuesday (5 June) Telecom requested a delay in the timeframe to provide its first standard terms proposals due on 12 June. After considering Telecom's request, the Commission has decided to stick to the timeframe that it notified to Telecom on 3 April.

"While I understand Telecom's position, I am concerned by the need to ensure the integrity of the process for all parties and prompt delivery to the market of these key services that will promote competition in telecommunication markets." said Douglas Webb, Telecommunications Commissioner.

The dates for the delivery of the standard terms proposals were set by the Commission after holding Scoping Workshops with Telecom and other interested parties. At those workshops, Telecom and the other parties gave their views on the timeframes which were considered when the due dates were set to deliver the proposals.

Background

Copies of Telecom's letters seeking an enlargement of the timeframe, the Commission's response and transcripts from the Scoping Workshops are available on the Commission website under Unbundled Local Loop Standard Access Service

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).

A brief overview of the key steps in a standard terms determination process is available on the Commission's web site www.comcom.govt.nz under Standard Terms Determinations