ComCom seeks haste in copper price review

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The Commerce Commission wants to know if there are ways to shorten its review of copper broadband prices.

In December last year the Commerce Commission set one part of wholesale copper broadband prices (known as the unbundled copper local loop or UCLL) at $23.52 per line per month.

The regulator worked out this price based on international benchmarking but Chorus, Telecom, CallPlus, Kordia and Vodafone asked for a full cost review of the service, known as a final pricing principle (FPP).

This is far more complex than benchmarking and Commerce Commission regulation manager John Hamill said the process can "take some years".

"However, we are interested in whether there are circumstances in New Zealand in which a sort process might be feasible or desirable. This suggests the submitters should consider the trade-offs that may be involved in a shorter process," Hamill said in a statement today.

The regulator today released a consultation document for the FPP review.

The commission is also seeking feedback on whether it will backdate the new broadband price if it changes in the FPP process. The price change is due to come into effect in December next year and the FPP review is unlikely to be completed at this time.

"The Court of Appeal's observations favour backdating," Hamill said.

"However we are aware that this may have a significant impact on parties depending on the outcome of this review," he said.

Last month the commission made cuts to another component of copper broadband pricing, known as unbundled bitstream access (UBA). Chorus says these cuts would hit its finances and mean it can't raise enough funds for its part of the ultra-fast broadband build.

Following a review of Chorus' ability to meet its fibre broadband build commitments, the Government yesterday said Crown Fibre Holdings and Chorus should meet to review UFB contracts.

The UBA cuts are also due to come into effect in December review and Chorus has similarly asked for an FPP of this price.