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Commission starts telco services competition review

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Fuseworks Media
Fuseworks Media
Commission starts telco services competition review

The Commerce Commission today commenced its annual competition review of unbundled copper local loop (UCLL) and unbundled bitstream access (UBA) backhaul link services.

This will be the fourth competition review of UCLL backhaul links and the second competition review of UBA backhaul links, conducted under section 30R of the Telecommunications Act.

The competition review will determine whether Chorus (access provider for both backhaul services) faces limited, or is likely to face lessened, competition in the relevant markets for backhaul primary and secondary links. Regulation does not apply on links where Chorus faces effective competition.

"The last review concluded that 127 UCLL primary backhaul links and no UBA backhaul links had become competitive," said Dr Ross Patterson, Telecommunications Commissioner.

In order to inform the competition review, the Commission is requesting information from interested parties. Submissions are due by 20 April 2012 and can be emailed to telco@comcom.govt.nz

More information about UCLL and UBA backhaul competition reviews is available on the Commission's website at www.comcom.govt.nz/competition-reviews-for-uba-backhaul-and-ucll-backhaul-services

Background

In June 2008, the Commission released the UCLL and UBA backhaul Standard Terms Determination (STD), which set out which backhaul routes were subject to regulation, as well as the terms and conditions governing the supply of the backhaul service on those routes.

As there are similarities between the UCLL and UBA backhaul services, the Commission indicated in March 2011 that a combined review process would be undertaken for both in the future.

The unbundled copper local loop (UCLL) refers to the service that enables access to, and interconnection with, Chorus's copper local loop network. It allows telecommunications companies to supply voice and broadband services to retail customers without the need to replicate the local loop.

Previous reviews of UCLL backhaul links were published on 30 April 2009 (Decision 667), 3 December 2009 (Decision 686), and 9 March 2011 (Decision 706) on the Commission's website at www.comcom.govt.nz/unbundled-copper-local-loop-backhaul-service

The unbundled bitstream access (UBA) backhaul service allows other telecommunications companies to supply broadband services to customers without the need to replicate Chorus's copper local loop network.

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