Commerce Commission seeks submissions on UBA competition review

The Commerce Commission is seeking submissions on a revised draft report on whether Telecom faces competition in providing the unbundled bitstream access (UBA) service.

If Telecom faces effective competition in an exchange service area (ESA), the terms of the UBA standard terms determination do not apply to the lines within that area.

The UBA service is a wholesale broadband service that allows telecommunications companies to supply broadband services to their retail customers without the need to replicate Telecom’s copper local loop. This service allows telecommunications companies to differentiate their own retail broadband products from Telecom’s.

After considering the issues raised in submissions, the Commission has changed its assessment criteria for whether there is effective competition for UBA.

Under the new assessment criteria, the Commission considers that Telecom faces effective competition in an ESA if two or more competing providers are present and Telecom’s market share in the ESA is less than 80 per cent.

The Commission has assessed Telecom against the new criteria. Based on this assessment, the Commission’s view is that Telecom faces effective competition in 27 exchanges and the terms of the UBA standard terms determination will therefore not apply on lines from these exchanges.

Submissions on the revised draft are due by 5pm on Wednesday 6 July 2011.

You can find the revised draft report on the Commission’s website: www.comcom.govt.nz/1st-competition-test-for-uba-std


Background

This is the first competition review of the designated access service of Telecom’s UBA since the UBA service standard terms determination was issued in December 2007.

Unbundled bitstream access
UBA refers to the service that enables access to, and interconnection with, the part of Telecom’s fixed public data network that connects the end-user’s building to Telecom’s first data switch (or equivalent facility) other than a digital subscriber line access multiplexer (DSLAM).