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Telecom is not surprised by the draft TSO loss figure released by the Commerce Commission today.
The calculation is for approximately six months from the passing of the Telecommunications Act in December 2001 to June 2002. The annualised figure is $73.45 million.
“You get a low number if you use a 6% return on capital in the calculation, and then go and base the rest of the calculation on a hypothetical network that’s got little to do with the actual cost involved in providing every New Zealander with telecommunication services,” said General Manager Government and Industry Relations Bruce Parkes.
“We’ll be talking to the Commission about the need to bring some more reality into the exercise.
“Providing Kiwis with infrastructure is a real challenge. Under-compensating the businesses that invest in New Zealand is not the way to ensure we have adequate infrastructure.
Mr Parkes said the Commission had reiterated that this was a draft number.
“Telecom will be raising its concerns with the Commission at the forthcoming conference on the TSO scheduled for mid-August.”
For further information, please contact:
John Goulter
Public Affairs & Government Relations Manager
Phone 04 498 9369
Mobile 027 232 4303
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