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- Release Date: 08/04/14 10:57
- Summary: GENERAL: CNU: High Court leaves status quo in place
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CNU
08/04/2014 08:57
GENERAL
REL: 0857 HRS Chorus Limited (NS)
GENERAL: CNU: High Court leaves status quo in place
STOCK EXCHANGE ANNOUNCEMENT
8 April 2014
High Court leaves status quo in place
Chorus notes today's High Court judgment dismissing its appeal from the
Commerce Commission's (Commission) determination of the regulated price of
Chorus' Unbundled Bitstream Access (UBA) service using a benchmarking
methodology, a decision scheduled to come into effect on 1 December 2014.
"We will be reviewing the Court's findings in detail. It was important that
a regulatory decision of such significance for investment in communications
infrastructure enabling better broadband for New Zealand was reviewed by the
Court. The appeal permitted in the regulatory framework was on a question of
law only rather than a review on the merits as is permitted in other
industries. We have always acknowledged that the Commission had significant
challenges in applying the law as it stands and we remain of the view that
benchmarking is an outdated methodology," said Vanessa Oakley, General
Counsel.
"Today's decision simply leaves the status quo in place. Our focus continues
on the parallel Commission processes that use cost modelling for the first
time to review the benchmarked prices of regulated services. The Commission
has recently said it is aiming to complete the price reviews
contemporaneously by 1 December 2014."
"If the Commission meets that timetable the cost modelled price for UBA and a
new cost modelled price for the unbundled copper local loop (UCLL) service
will apply from 1 December."
ENDS
For further information:
Ian Bonnar
Corporate Affairs Manager
Mobile: +64 (27) 215 7564
Email: [email protected]
Brett Jackson
Investor Relations Manager
Mobile: +64 (27) 488 7808
Email: [email protected]
End CA:00249237 For:CNU Type:GENERAL Time:2014-04-08 08:57:35
