Telecom and Telstra agree on access, says Commerce Commission

2.35pm

The Commerce Commission has released its draft determination relating to wholesale access to Telecom New Zealand's residential services by TelstraClear.

The consumer watchdog said TelstraClear and Telecom have negotiated key elements relating to access to a number of residential wholesale services.

Submissions can be made on the draft report until April 30 and the commission will hold a conference on the draft next month.

A final determination is expected in June.

Under the Telecommunications Act, TelstraClear originally requested the commission to determine the full range of price and non-price terms and conditions.

On 31 March 2004, TelstraClear and Telecom jointly informed the commission that agreement had been reached on all aspects of the original application, apart from the services to be covered and the wholesale discount rates for those services.

The commission said the draft report deals with outstanding issues that remain between the telcos.

Telecommunications Commissioner Douglas Webb said the Telecommunications Act had encouraged meaningful commercial negotiations between the parties.

"This is a win-win outcome for TelstraClear and Telecom, and also consumers, who will ultimately have greater choice of telecommunications services," Mr Webb said.

Last month the commission launched legal action against Telecom, citing anti-competitive pricing of wholesale data transmission services.

The action relates to Telecom's pricing of "data tails" -- links Telecom sells to other companies with more limited networks so they can supply data transmission services to businesses.

Telecom was trading down 4 cents at $5.70 by 1.30pm this afternoon, while Telstra was up 3 cents at $5.45.

- NZPA