The Commerce Commission has launched an investigation into an alleged breach of Separation Undertakings by Telecom.

The investigation will assess whether Telecom Wholesale is likely to have discriminated against telecommunications providers in favour of Telecom Retail. The investigation is expected to be completed by the end of March 2011.

The Commission’s concerns arise from the price at which Telecom Wholesale offered the unbundled bitstream access service to providers who intended to take up the sub-loop extension service from Chorus, compared with the price Telecom Wholesale charged to Telecom Retail.

“Earlier this year concerns were raised with the Commission about the price Telecom requested for the UBA service to be supplied in conjunction with SLES,” said Dr Ross Patterson, Telecommunications Commissioner.

“At the time the Commission advised Telecom of its concerns that Telecom Wholesale’s offer was discriminatory. Telecom responded that it did not believe that Telecom Wholesale was in any way in breach of its non-discrimination obligations.”

The investigation follows the completion on October 14th of a clarification process into the provision of UBA in conjunction with SLES.

The Commission will now gather information to assist its investigation and parties will be able to make submissions during the investigation.