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Commission's Accounting Separation Requirements Top-Notch

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Fuseworks Media
Fuseworks Media
Commission's Accounting Separation Requirements Top-Notch

5 December 2008 - InternetNZ (Internet New Zealand Inc) has reiterated today its strong support for the Commerce Commission's Disclosure Requirements as released in late October for public comment.

"Accounting separation is a vital complement to Telecom's operational separation. Proper information disclosure requirements will allow regulators and the industry to be sure that Telecom is meeting its operational separation undertakings, and that the prices it charges for services are related to the real costs involved," says Executive Director Keith Davidson.

"The robust regime the Commission has outlined will lead to real benefits for consumers and the economy as a whole.

"A successful operational separation regime, underpinned by robust accounting separation, will help the development of the competition needed to drive investment in better broadband services.

"We are pleased to see that many of our suggestions have been taken into account by the Commission. The draft requirements document sets out a much stronger set of requirements for Telecom than the earlier discussion paper did.

"The industry and consumers need this strong regime. Without it, nobody can accurately work out whether operational separation is working or not. Transparency is vital to a competitive, vibrant telecommunications industry, and this accounting separation model can provide it.

"InternetNZ calls on the Commission to stick to the regime set out when it finalises the framework. Any weakening of the final requirements would be to the detriment of consumers and the industry as a whole," says Davidson.

InternetNZ's submission welcoming the Commission's decision is on its website at www.internetnz.net.nz, having been lodged in early November.

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