InternetNZ, TUANZ and Consumer’s submission on UCLL asks Commission to do the job right
InternetNZ (Internet New Zealand Inc), TUANZ and Consumer have today lodged a cross-submission with the Commerce
Commission, requesting that parties take a careful and measured approach to setting the price of the Unbundled Copper
Local Loop (UCLL) service as part of the Final Pricing Principle process now under way.
In its submission, the group says that getting this phase of the pricing review right is absolutely crucial. The
submission states that if the Commerce Commission acts too quickly, “that may be regretted later.”
InternetNZ CEO Jordan Carter says that rushing now could find the sector back where it was last year - mired in
confusion and frustrating debates that serve no purpose.
“The Commission needs to take the time to design the FPP process properly, and to minimise the areas of conflict within
the industry. Taking the time to do so now will mean the process works better and gets to a faster outcome in the end.
“Everyone wants to see certainty, but that has to be based on reality. The alternative is further industry chaos, and
the risk of wrong and higher prices for Kiwi broadband users.
The submissions released by the Commission already show that the industry is a long way from landing on a collective
view for an ideal process and design. We need to get that right,” said Mr Carter.
“Our submission also notes that there are serious problems with the suggestion by Chorus that its own professional
advisors do the initial modelling process for the FPP. The Commission has to do that work, to avoid the obvious conflict
of interest in Chorus modelling a pricing structure it would be later be bound by through the FPP.
“The public interest in fair pricing for broadband is at risk if the regulated party designs its own cost model,” Carter
says.
“We look forward to hearing the Commission’s decision on the next steps. We hope that it takes the views in this
submission into account as it does so,” Jordan Carter says.
ENDS