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- Release Date: 17/02/14 10:38
- Summary: GENERAL: CNU: Chorus proposes resolution of FPP processes by end 2014
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CNU
17/02/2014 08:38
GENERAL
REL: 0838 HRS Chorus Limited (NS)
GENERAL: CNU: Chorus proposes resolution of FPP processes by end 2014
STOCK EXCHANGE ANNOUNCEMENT
17 February 2014
Chorus proposes resolution of both FPP processes by the end of 2014
Chorus has proposed a method by which the Commerce Commission's two Final
Pricing Principle (FPP) regulatory processes could both be completed by the
end of 2014.
The proposal forms part of Chorus' submissions to the Commerce Commission on
the FPP review of the price Chorus can charge for the Unbundled Copper Local
Loop (UCLL) service.
"It was pleasing to see the Commerce Commission aiming to complete the
related FPP review of Unbundled Bitstream Access (UBA) by the end of the
year," said Chorus CEO Mark Ratcliffe.
"We acknowledge that the UCLL and UBA FPP processes have critical linkages,
and the aggregate price will be the most relevant to the industry. To that
end, we believe resolution of both processes by the end of the year would
provide everyone with greater certainty."
As requested by the Commission, and to support the timely resolution of the
FPP processes, Chorus has proposed a process that would allow the Commission
to model the full copper network in order to determine UCLL and UBA prices in
parallel.
"We believe this will help the Commission meet its obligation to complete the
FPP process as soon as practicable and do so in a way that takes appropriate
account of all costs," he said.
Chorus has also provided advice from Analysys Mason, world leading experts on
economic cost modelling, on an appropriate approach to modelling.
"While the Commission and the industry are investing a significant amount of
resource into these FPP processes, which will provide the pricing
copper-based services during the transitional period through to 2020, it is
worth noting that a new regulatory regime will come into existence in 2020.
At this stage no-one knows what form it will take, so we also look forward to
more clarity on this."
Chorus has also made submissions on the Commission's review of the standard
terms determination price list for Chorus' unbundled copper low frequency
service (UCLFS).
Copies of the UCLL and UCLFS submissions are attached.
ENDS
For further information:
Ian Bonnar
Corporate Affairs Manager
Phone: +64 9 358 6061
Mobile: +64 (27) 215 7564
Email: [email protected]
Brett Jackson
Investor Relations Manager
Mobile: +64 (27) 488 7808
Email: [email protected]
End CA:00247046 For:CNU Type:GENERAL Time:2014-02-17 08:38:47
