NZ's ComCom sets final decisions for UFB regulation

By Dylan Bushell-Embling
Thursday, 15 October, 2020

NZ's ComCom sets final decisions for UFB regulation

New Zealand’s Commerce Commission has released its final decision on aspects of the input methodologies that will inform the maximum prices Chorus will be able to charge retailers for access to the Ultrafast Broadband (UFB) national fibre network.

The first set of decisions incorporate areas including cost allocation, capital expenditure, returns to investors and quality.

The final decision on the financial loss asset, an evaluation on the losses accrued by Chorus while rolling out the network, will be published next month.

These input methodologies will inform the regulatory regime for the UFB, which will set the price constraints and minimum quality standards Chorus must deliver as the main operating company for the government-financed network.

The Commission will now move into the final stage of the process for setting this fibre regulation, which will involve using the input methodologies framework to set detailed regulatory requirements for the network.

As well as Chorus, these regulations will require the local fibre companies responsible for the minority of the network build to adhere to standards including publicly disclosing information about their performance, including in relation to profits, quality of service and expenditure.

“Our input methodologies are designed to incentivise fibre providers to innovate, invest and improve their efficiency so that consumers receive high-quality and affordable broadband services," Telecommunications Commissioner Tristan Gilbertson said.

“I am grateful for the extensive engagement we have received from stakeholders as we have moved through this process over the past two years. Input methodologies have never been set for fibre networks before — so this has been pioneering work for the Commission and the industry.”

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