KEY POINTS:
The Commerce Commission today set the local wholesale access price to the Telecom network above draft levels in its final determination issued today.
The watchdog's unbundling determination will allow competitors to access services from Telecom's local loop at the set price without the need for any separate agreements.
The commission said Telecom must give rivals access to the copper phone lines which run from houses to Telecom phone exchanges - so called unbundled local loops - at $19.84 per subscriber.
The commission set a price of $36.63 for supplying access to rural areas and the charge for transferring a customer to the service was set at $74.83.
The new charges compared with draft prices of $16.49 for urban subscribers, and $32.20 for rural phone users. The draft transfer charge had been $83.70.
Once the new regulations come into force, phone companies will be able to install their own equipment in Telecom's exchanges, and access the loop for the agreed rental price to provide phone and internet services to customers.
In May 2006, the Government announced sweeping market reforms, which it said would make telecommunications services better and cheaper.
The local loop is the copper telephone wire that runs from a Telecom telephone exchange to an end-user's premises.
Telecom shares shot up 11c to $4.31 after today's announcement.
- NZPA
