The Commerce Commission has amended its Decision 582, which set the terms on which Telecom is required to provide a wholesale bitstream service to internet service providers CallPlus and ihug.

The amended decision makes changes to the methodology for calculating the price payable to Telecom for the service. The new access price for the June quarter is $26.35, with further price adjustments for earlier periods.

Following last year's changes to the Telecommunications Act, the bitstream service has been replaced by a more comprehensive service. CallPlus and ihug can choose to keep receiving the bitstream service until 22 June 2008, or receive the new service when it is available under a new Standard Terms Determination for bitstream issued by the Commission.

Telecom will be required to supply bitstream services under the upcoming Unbundled Bitstream Access (UBA) Standard Terms Determination (STD). There is therefore the potential for different prices under Decision 582 and the UBA STD for the same bitstream service.

A copy of this decision is available on the Commission's website under 2006 Ihug Wholesale Bitstream Reconsideration Application

Background

The expiry date for Decision 582 as amended is the earlier of:

(a) 22 June 2008; or

(b) If either access seeker has requested Telecom in writing to supply an equivalent service on the terms specified in the UBA STD, the date on which Telecom begins to supply the service to that access seeker under the STD, but continues in respect of the other access seeker.

This Decision is for a bitstream access over a circuit provided by Telecom between an end-user's premises and an ATM switch. This circuit is used by a telecommunications provider to deliver retail broadband services. A telecommunications provider must supply other components including national and international transmission, connection to the internet and ISP services.

This service is no longer available under the amended Telecommunications Act, and Telecom is likely to provide for supply of a similar service under the UBA STD. Telecom is required to supply their UBA Standard Terms Proposal (STP) on Wednesday, 11 July. The Notice issued to Telecom on the UBA requested that Telecom supply a range of bitstream variants, including Naked DSL.