Backhaul services draft reports released

The Commerce Commission has released a revised draft report on the unbundled copper local loop (UCLL) backhaul service and a draft report on the unbundled bitstream access (UBA) backhaul service.

The Commission has looking at whether Telecom New Zealand Limited faces competition for providing these backhaul services.

Backhaul is the link that connects competitors to Telecom’s networks so they can provide services such as voice and broadband to households.

The Commission says that where it finds that a link is competitive, it will not be subject to regulation. But where Telecom is found to face limited competition, a link will be regulated.

Dr Ross Patterson, Telecommunications Commissioner, explained, “The Commission now considers that any alternative backhaul operator that is within 1-2 kilometres of a Telecom exchange will be considered a competitive constraint on Telecom unless the backhaul operator has publicly stated that it does not intend to connect to the exchange. This change to the criteria more appropriately reflects the extent to which Telecom is constrained in backhaul markets.”

Using the revised framework, the Commission has issued a revised draft review for the UCLL backhaul service. The Commission has also issued the first review for the UBA Backhaul service.

Submissions on both draft reports are being taken up to 5pm on October 7th.