New Zealand - Regulatory Environment - Local Loop Unbundling and TSO

Synopsis

In this report we outline key regulatory developments in the New Zealand telecommunications market and provide analyses in the areas of local loop unbundling including developments regarding interconnection and the Telecommunications Service Obligation and Telecommunications Relay Service. Information on the Telecommunication Development Levy that will fund some of the outlay for Rural Broadband Initiative is provided. An overview of the Telecommunications Relay Service and the Telecommunications Dispute Resolution is provided.

Previously a Telecommunications Amendment Bill enabled the introduction of unbundling of the local loop and the operational separation of the incumbent, Telecom New Zealand. Unbundled Bitstream Access and UBA Enhanced services are now available from Telecom following previous regulatory reforms.

Other regulatory developments are provided in the two separate reports: New Zealand - Regulatory Environment - Telecommunications Act and New Zealand - Regulatory Environment – Mobile, Wholesale and Number Portability. While background information on this issue can be found in a separate report: New Zealand - Regulatory Environment - Local Loop Unbundling and TSO Background Report.

Table of Contents

• 1. Synopsis
• 2. Local Loop Unbundling (LLU) and Unbundled Bitstream (UBS) overview
  • 2.1 LLU versus UBS
  • 2.2 Unbundled Bitstream Access (UBA)
  • 2.3 Wholesale bitstream services
• 3. LLU and UBS market developments
  • 3.1 Developments – 2008 - 2010
    • 3.1.1 UBS complete withdrawal phase starting in 2010
    • 3.1.2 Availability and conditions of regulated services
    • 3.1.3 Unbundled copper local loop (UCLL)
    • 3.1.4 UBA
    • 3.1.5 EUBA launch and uptake
    • 3.1.6 Local Loop and Bitstream Backhaul Services
    • 3.1.7 Sub-loop related services (cabinetisation)
    • 3.1.8 Telecom required to submit terms and conditions for unbundling
    • 3.1.9 InternetNZ ULL and cabinetisation recommendations
• 4. Telecommunications Service Obligations (Kiwi Share)
  • 4.1 Background
  • 4.2 Telecommunications Development Levy – 2010 - 2017
  • 4.3 TSO proposed reform – 2009
  • 4.4 Cost comparison
• 5. Telecommunications Relay Service (TRS)
  • 5.1 Overview
• 6. Telecommunications Dispute Resolution (TDR)
  • 6.1 Scheme overview
• 7. Related reports

• Table 1 – Annual cost of TDL – 2010 - 2017
• Table 2 – TSO qualified revenue and TRS TSO charges – 2007 - 2009

• Chart 1 – UCLL connections – 2008 - 2010
• Chart 2 – Annual cost of TSO – 2001 - 2009
• Chart 3 – Sprint payments from TRS/TSO – 2004 - 2010

• Exhibit 1 – Regulatory timeline – scheduled UBA and other services launch by service variant
• Exhibit 2 – Understanding wholesale bitstream offers around the world