Telecommunications Act: Commission commences investigation into unbundling Telecom's local loop network and fixed Public Data Network
Published10 Apr 2003
The Commerce Commission has today released an issues paper to commence its investigation into unbundling Telecom's local loop network and its fixed Public Data Network.
The Telecommunications Act 2001 requires the Commission to investigate whether the unbundled elements of Telecom's local loop network and its fixed Public Data Network, as well as access to interconnection with that data network, should be regulated and made available to Telecom's competitors.
Telecommunications Commissioner Douglas Webb said that the unbundling of telecommunications networks is a means of allowing competitors to use parts of the network on a wholesale basis in order to build up a competitive offering of retail services.
"Unbundling has been adopted in a number of countries, including in Europe and the USA, to expand the availability of broadband in particular" he added.
"The issues paper represents the start of the Commission's review process. Although this phase of the consultation is not required under the Act, the Commission wants to consult widely with industry and user groups, including on the proposed approach to the reviews" said Mr Webb.
The Commission invites interested parties to make written submissions on the issues paper by
14 May 2003. After considering the submissions, the Commission will move to a draft report stage and hold a public conference.
The issues paper and appendices can be downloaded from the Commission's website www.comcom.govt.nz under Telecommunications Regulation / s64 Unbundling Reviews.
Submission details
The closing date for submissions, together with electronic versions, is 14 May 2003.
Electronic versions should be e-mailed to telecommunications@comcom.govt.nz. These will be published on the Commission's website.
Hard copies of the submissions should be posted to:
Unbundling Issues Paper
Network Access Group
Commerce Commission
PO Box 2351
Wellington
Background
Section 64 of Telecommunications Act 2001 requires the Commerce Commission to investigate whether or not each of the following services should be regulated:
(a) access to the unbundled elements of Telecom's local loop network; and
(b) access to the unbundled elements of, and interconnection with, Telecom's fixed PDN.
The issues paper seeks information on a range of areas in order for the Commission to move to the draft report stage. The issues paper sets out:
The process for conducting the investigations, which is governed by Schedule 3 of the Act;
The Commission's suggested decision making framework in order to decide whether or not to recommend regulation to the Minster of Communications;
An overview of considerations in examining the case for unbundling e.g. potential costs and benefits; and
An overview of international experience.
The Commission will be guided by the purpose statement of the Telecommunications Act 2001, namely whether or not regulation would best give, or be likely to best give, effect to the promotion of competition in telecommunications markets for the long-term benefit of end-users.
Part 1 of Schedule 3 of the Telecommunications Act governs the process for conducting the investigations. The Commission must make reasonable efforts to deliver a final report to the Minister of Communications within 120 working days of giving public notice of the commencement of the investigations and not later than 20 December 2003.
The Commission has given public notice of the commencement of the investigations today, 10 April 2003, by publishing a notice in the New Zealand Gazette.
Prior to commencing the investigations, the Commission received two reports on unbundling from Telecom New Zealand Ltd. These are available on the Commission's website. The Commission has not discussed these reports with Telecom.
Media contact: Osmond Borthwick, Manager Network Access Group
