The Commerce Commission today released a telecommunication service obligation (TSO) determination for the Local Residential Telephone Service covering the 2006/07 year. The draft cost is $62.8 million.
Under the TSO, Telecom is obliged to provide certain local residential telephone services to residential customers who may not otherwise be provided with those services at an affordable price. The TSO allows Telecom to recover its costs of providing this service.
In producing this draft determination the Commission has followed the modelling approach used in the 2004/05 and 2005/06 determinations.
The total cost for 2006/07 will be shared according to the TSO Cost Allocation determination for 2006/07 which is available on the Commission’s website. Under the Cost Allocation determination the costs will be shared amongst the following: Telecom, Vodafone, TelstraClear, WorldxChange, Compass, CallPlus, Ihug, Woosh and Teamtalk.
See Press Release
Source: New Zealand - Commerce Commission