Orcon & CallPlus join forces

Orcon & CallPlus join forces to submit on Local Loop Unbundling

For Immediate Release

In a joint submission to the Commerce Commission on Telecom's standard terms proposal for local loop unbundling (LLU), telecommunications providers Orcon and CallPlus have called for significant changes in order to allow the effective implementation of local loop unbundling.

The submission details several areas of Telecom's mammoth 1200-page proposal that are likely to impair the LLU process, calling it Œeasily fixable' "The Telecom proposal has several key areas that we as access seekers simple can't stomach, mostly because Telecom have used their Wholesale Services Agreement (WSA) as the starting point for the development of these standard terms," said Orcon Chief Executive Scott Bartlett.

"This proposal is a classic example of where the devil is in the detail; however, we are confident that by pulling together, Orcon and CallPlus have recommended reasonable changes that will allow for better broadband in New Zealand."

The submission points to international examples of regulated terms, in particular those negotiated between BT/Openreach and Ofcom as an appropriate benchmark for New Zealand's standard terms.

Orcon and Callplus have proposed including additional service level requirements and accompanying penalties, if service levels are not reached.

In addition, the inclusion of sundry charges pricing in the standard terms is described as contrary to the Act, and to a principled and pragmatic approach. Orcon and CallPlus have proposed that benchmarking for sundry charges is required.

"Telecom have failed to provide an adequate justification for the inclusion of the sundry charges, and a model which includes such charges is contrary to the optimal outcomes for access seekers, and indeed the New Zealand public" continued Bartlett.

Finally, the submission adds its general support for the ihug/Vodafone submission, particularly around the implementation plan. "In addition to what the ihug/Vodfone submission suggests in regard to the implementation plan, we feel VDSL should be made available during any trial or soft launch of LLU. We want faster speeds, as soon as possible so that New Zealanders really see the benefits of LLU" said Bartlett.

"CallPlus and Orcon compete aggressively in the market on a Œday to day' bases but given the importance of this issue we decided to work together on this one." said Graham Walmsley, CallPlus' General Manager of Wholesale & Regulatory.

"The industry has been meeting and working on this for 12 months, we've reached some critical agreements but competitors and the commissioner are unlikely to agree with Telecoms one sided proposals around pricing and penalties. It's now critical for Kiwis that the Commerce Commission push on' with the next step of reaching a final determination prior to year end." concludes Walmsley.

Orcon and Callplus submitted their response to Telecom's standard terms proposal on LLU yesterday.

ENDS

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