Orcon “Cautiously optimistic” about LLU draft

Orcon “cautiously optimistic” about draft LLU determination

For immediate release

The draft local loop unbundling (LLU/UCLL) standard terms determination delivered by the Commerce Commission this morning is being greeted with cautious optimism by telecommunications and internet provider Orcon.

The most eagerly anticipated deliverable was the monthly charge for rental of a copper line. The draft determination includes a de-averaged charge of $16.49 for urban lines, and $32.20 for non-urban lines.

"The price set for urban lines is at the top end of the range we had anticipated, but at that level urban UCLL investment is definitely viable; we will be pushing ahead with our investment plans" said Scott Bartlett, Chief Executive of Orcon.

The high charge for copper in non-urban exchanges places a question mark around the viability of investment in broadband infrastructure in rural areas

"There is a very real risk that this high pricing differential will serve as a catalyst for the digital divide quickly growing into the digital chasm" continued Bartlett.

An additional red flag has been raised over the high price for the establishment of a new copper loop to a customers location ($250).

"There are several charges in this definition that are likely to be prohibitive to the development of UCLL provision in New Zealand" continued Bartlett, "we will definitely be submitting our concerns with this determination."

Orcon has made several announcements about their intention to invest in building a next generation wholesale network for the delivery of voice and data applications to New Zealanders.

“We are committed to delivering the services that New Zealanders want and deserve, and this is just not possible with the current wholesale network” concluded Bartlett.

The Commerce Commission is now accepting submissions on the draft determination, and intends to deliver their final standard terms determination in November.

ENDS

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