Commission determines telecommunications obligations

The Commerce Commission today released its draft determination on Telecom's telecommunications service obligations (TSO) for 2003/2004.

The competition watchdog said it calculated the net cost of the TSO for the period from July 1, 2003 to June 30, 2004 to be $41.2 million.

The TSO, previously known as the Kiwi share, sets levels for residential telecommunications services and prices, aimed mainly at isolated and rural areas.

It originated when the former state-owned telco was privatised in 1990, and covers emergency services, connecting calls, free local residential calls and Internet data speeds.

The Commission calculates the cost and Telecom offsets that cost to other telecommunications companies according to market share.

Today's draft determination is open to submissions until February 3, 2006, the commission said.

- NZPA