Commerce Commission completes review of wholesale UBA price

The Commerce Commission has released its final determination of unbundled bitstream access (UBA) pricing following a review of UBA pricing components (including overage, ISP services, bundle discounts and data transmission).

As a result of the review the Commission has updated the amount deducted from the UBA price to reflect the value of Telecom’s internet service provider (ISP) services. The value of this component of the UBA price has increased to reflect the value that Telecom currently attributes to ISP services provided to its own customers.

The Commission has also updated the price for data transmission, which has decreased to reflect Telecom’s retail data prices as at 30 June 2011. The Commission adopted a new method for calculating this price, following submissions from the telecommunication industry, which now takes into account the retail value of Telecom’s broadband plans rather than cost.

The approach to other components of the UBA pricing (overage, the bundle discount and the avoided costs saved discount) remains unchanged.

Overall the review will result in a very small decrease in the UBA wholesale price.

Telecom is due to submit a service adjustment for approval by 31 August 2011. The changes in price from this review and the service adjustment will be implemented in September and backdated to 1 July 2011.