Issued 11 July 2003

The Commerce Commission will hold a two day conference next week on the Total Service Long Run Incremental Cost (TSLRIC) pricing methodology to be used by the Commission when conducting pricing review determinations.

The conference will be held on Monday 14 and Tuesday 15 July from 9am each day in the ground floor conference room of NGC House, 44-52 The Terrace, Wellington.

The Commission published two discussion papers on TSLRIC pricing methodology last year and called for submissions earlier this year. The Commission's two discussion papers: Interconnection Pricing methodology, Discussion paper, 5 April 2002 and Application of a TSLRIC pricing methodology, Discussion paper, 2 July 2002, are available on its website at http://www.comcom.govt.nz/telecommunications/Pricing.cfm

Following the conference, the Commission will develop a TSLRIC principles paper which will be released in early September. The Commission will use the TSLRIC methodology to assist it in making its final determinations relating to the pricing review applications filed by both Telecom and TelstraClear in relation to the Commission's previous interconnection determination.

Attached is a copy of the conference programme.

Media are asked to confirm their attendance with Jackie Maitland, Communications Manager,

(04) 924-3708 or jackie.maitland@comcom.govt.nz

Agenda for TSLRIC Conference

NGC House, 44-52 The Terrace, Wellington

Day 1: Monday 14 July

9.00am Opening comments (Commissioner Webb)

Telecom Submissions

9.15am Opening comments (Bruce Parkes)

9.30am Cost of Capital (PwC John Redmayne

and Mike Schubert)

10.45am Morning break

11.00am Cost of Capital continued.

12.30pm Lunch

1.30pm Other modelling issues (Alastair

Macpherson PwC London)

3.00pm Afternoon break

3.15pm Other modelling issues continued

4.30pm Closing Remarks (Bruce Parkes)

5.00pm Wrap up (Commissioner Webb)

5.15pm Close of session

Day 2: Tuesday 15 July

9.00am Welcome (Commissioner Webb)

9.05am Walker Wireless (Nick Clarke)

TelstraClear Submissions

9.45am Opening comments/Presentation 1 (Rob

Allen/Grant Forsyth)

10.45am Morning break

11.00am Presentation 2

12.00pm Presentation 3

1.00pm Lunch

2.00pm TelstraClear Presentation 4

3.00pm Afternoon break

3.15pm TelstraClear Presentation 5/Closing

Remarks

4.15pm Wrap up (Commissioner Webb)

4.30pm Close of session