Telecommunications Act 2001 No 103 (as at 11 September 2007), Public Act

Reprint
as at 11 September 2008

Telecommunications Act 2001

Public Act2001 No 103
Date of assent19 December 2001

Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this eprint.

A general outline of these changes is set out in the notes at the end of this eprint, together with other explanatory material about this eprint.

This Act is administered in the Ministry of Economic Development.


Contents

Telecommunications Commissioner

Levy

Application of Commerce Act 1986

Application

Notification

Investigation

Consultation

Determination

Preliminary

Standard terms development process

Standard terms proposal

Draft standard terms determination

Standard terms determination

Application of standard terms determination

Residual terms determination

Commission may initiate process for designated multinetwork service determination on own initiative

Application

Notification

Investigation

Draft determination

Determination

Application

Notification

Calculation of price

46 Offences [Repealed]

Draft determination

Consultation

Determination

Preliminary provisions

Requirements for separation plan

Process for settling separation plan

Implementation of separation plan

Statutory provisions for enforcement of separation plan

Variation of separation plan

Assessment of compliance

Requirement to produce certain information

82 Offences [Repealed]

Net cost

Amount of revenue received by liable persons in relation to TSO instrument

General provision relating to TSO cost allocation determination and TSO cost calculation determination

TSO cost allocation determination

TSO cost calculation determination

Calculation of amount payable by liable person

Calculation of amount payable by TSO provider

Remedies

Miscellaneous

Declarations of network operator status

Connection to network

Information requirement

Misuse of network

Evidence

Preliminary

Rights of entry to land in respect of lines

Rights of entry to land in respect of existing works and existing lines

Interference with lines

Lines on roads

Telephone cabinets, etc, on roads

Miscellaneous

Preliminary

Civil infringement notice

Pecuniary penalty

156U Purpose of this Part [Not in force]

156V Interpretation [Not in force]

156ZF Right of appeal [Not in force]

156ZG Purpose of subpart [Not in force]


The Parliament of New Zealand enacts as follows:

1 Title
  • This Act is the Telecommunications Act 2001.

Part 1
Preliminary

Subpart 1General

2 Commencement
  • This Act comes into force on the day after the date on which it receives the Royal assent.

3 Purpose
  • (1) The main purpose of this Act is to regulate the supply of telecommunications services.

    (2) To avoid doubt, nothing in subsection (1) or in any other provision of this Act limits the Resource Management Act 1991.

4 Overview
  • In this Act,—

    • (a) provisions concerning the functions of the Commission under this Act and the performance of those functions by members of the Commission (in particular, the Telecommunications Commissioner) are set out in subpart 2; and

    • (b) telecommunications services that are regulated are contained in Schedule 1 and are classified as designated services (Part 2 of Schedule 1) or specified services (Part 3 of Schedule 1); and

    • (c) supplementary provisions concerning the detail of those regulated telecommunications services may be—

      • (i) prescribed by regulations (section 69):

      • (ii) provided in telecommunications access codes (Schedule 2) prepared by the Commission on its own initiative or formulated by the Telecommunications Industry Forum and approved by the Commission; and

    • (d) provisions concerning determinations by the Commission in respect of those regulated telecommunications services are set out in subparts 2 to 5 of Part 2; and

    • (e) provisions about altering regulated telecommunications services are set out in subpart 6 of Part 2 and Schedules 3 and 3A; and

    • (ea) provisions requiring the operational separation of Telecom are set out in Part 2A; and

    • (eb) provisions about the preparation and disclosure of information are set out in Part 2B; and

    • (f) provisions about the supply of certain telecommunications services under TSO instruments, the enforcement of those instruments, and contributions payable by certain telecommunications service providers to the suppliers of those telecommunications services are set out in Part 3; and

    • (g) provisions from Parts 1 and 1A of the 1987 Act about the following matters are set out in Part 4:

      • (i) network operators and connection to, and misuse of, a network (subpart 1):

      • (ii) maintenance of networks (subpart 2); and

    • (ga) enforcement provisions are set out in Part 4A; and

    • (gb) provisions facilitating the establishment of 1 or more complaints systems for the purpose of addressing complaints by consumers against service providers are set out in Part 4B; and

    • (h) miscellaneous provisions about the repeal of certain provisions of the 1987 Act (including consequential amendments and transitional provisions) are set out in Part 5 and Schedule 4.

    Paragraph (c)(ii) was amended, as from 22 December 2006, by section 4(1) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by inserting the words prepared by the Commission on its own initiative or after the expression (Schedule 2). See sections 62 to 66 of that Act for the transitional provisions.

    Paragraph (e) was amended, as from 22 December 2006, by section 4(2) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the words Schedules 3 and 3A for the expression Schedule 3. See sections 62 to 66 of that Act for the transitional provisions.

    Paragraphs (ea) and (eb) were inserted, as from 22 December 2006, by section 4(3) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

    Paragraphs (ga) and (gb) were inserted, as from 22 December 2006, by section 4(4) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

5 Interpretation
  • In this Act, unless the context otherwise requires,—

    1987 Act means the Telecommunications Act 1987

    access provider

    • (a) means, in relation to a designated service or specified service, the person named or described in Part 2, or Part 3, of Schedule 1 as the access provider for the designated service or specified service; and

    • (b) means, in relation to a service that is supplied under a registered undertaking, the person that provided the undertaking under Schedule 3A

    access provider: this definition was substituted, as from 22 December 2006, by section 5(1) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

    access seeker

    • (a) means, in relation to a designated service or specified service, the person named or described in Part 2, or Part 3, of Schedule 1 as the access seeker for the designated service or specified service; and

    • (b) means, in relation to a service that is supplied under a registered undertaking, a service provider who seeks access to the service and who complies with any conditions set out in the registered undertaking for eligibility as an access seeker

    access seeker: this definition was substituted, as from 22 December 2006, by section 5(2) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

    applicable access principles, in relation to a designated access service or specified service, means the access principles described in subpart 1 of Part 2, or Part 3, of Schedule 1 as the access principles for the designated access service or specified service

    applicable conditions, in relation to a designated service or specified service, means the conditions set out in Part 2, or Part 3, of Schedule 1 as the conditions for the designated service or specified service

    applicable final pricing principle, in relation to a designated access service, means the final pricing principle described in subpart 1 of Part 2 of Schedule 1 as the final pricing principle for the designated access service

    applicable initial pricing principle, in relation to a designated access service, means the initial pricing principle described in subpart 1 of Part 2 of Schedule 1 as the initial pricing principle for the designated access service

    approved code

    • (a) means a telecommunications access code that has been approved by the Commission under clause 9 or clause 10 of Schedule 2; and

    • (b) includes any amendment to an approved code that has been approved under either of those clauses

    auditor's report has the meaning set out in section 83(b)

    broadcasting has the same meaning as in section 2(1) of the Broadcasting Act 1989

    chief executive means the chief executive of the Ministry of Economic Development

    Commission means the Commerce Commission established by section 8 of the Commerce Act 1986

    computer record has the meaning set out in section 116(2)

    constitution of Telecom means the constitution of Telecom Corporation of New Zealand Limited

    deemed TSO instrument has the meaning set out in section 71

    designated access service means a service described in subpart 1 of Part 2 of Schedule 1

    designated multinetwork service means a service described in subpart 2 of Part 2 of Schedule 1

    designated service means a designated access service or designated multinetwork service

    draft code

    • (a) means a draft telecommunications access code prepared by the Forum under clause 1 of Schedule 2; and

    • (b) includes a proposed amendment to, or proposed revocation of, an approved code

    eligible person means a person who is—

    • (a) registered with the Commission for the purpose of voting on a draft code under clause 4 of Schedule 2; and

    • (b) a member of the Forum

    end-user, in relation to a telecommunications service, means a person who is the ultimate recipient of that service or of another service whose provision is dependent on that service

    existing lines

    • (a) means any lines constructed by Telecom or any of its former subsidiaries before 1 April 1989; and

    • (b) includes any lines that were wholly or partly in existence, or for which work on the construction, erection, or laying commenced, before 1 April 1989

    existing works

    • (a) means any works relating to the provision of telecommunications under the Post Office Act 1959 (or any former Act) that were wholly or partly in existence, or for which work on the construction, erection, or laying commenced, before 1 January 1988; and

    • (b) includes, for the purposes of subpart 2 of Part 4, any works relating to any conveyance that constitutes broadcasting under the Post Office Act 1959 (or any former Act) that were wholly or partly in existence, or for which work on the construction, erection, or laying commenced, before 1 January 1988; but

    • (c) does not include any works that, after that date, have been altered or moved or added to in a way that substantially alters their character or location, as the case may be

    existing works: this definition was substituted, as from 17 May 2005, by section 3(1) Telecommunications Amendment Act 2005 (2005 No 70).

    financial year, in relation to a TSO provider, means a period of 12 months beginning on 1 July in any year and ending on 30 June in the following year during some or all of which a TSO provider supplies services under a TSO instrument

    financial year: this definition was substituted, as from 22 December 2006, by section 5(3) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

    fixed PDN

    • (a) means a PDN, or that part of a PDN, that connects an end-user's building (or, in the case of commercial buildings, the building distribution frames) to a data switch or equivalent facility; and

    • (b) includes the data switch or equivalent facility and that part of the overall telecommunications link within the building that connects to the end-user's equipment

    fixed PSTN

    • (a) means a PSTN, or that part of a PSTN, that connects an end-user's building to the local switches or equivalent facilities; and

    • (b) includes those local switches or equivalent facilities

    fixed radio station means radio apparatus comprising transmitters or receivers, or a combination of transmitters and receivers, installed at a fixed location, for the purposes of carrying on a radiocommunications service

    Forum means the Telecommunications Industry Forum, which is a group that consists of at least 75% of all persons who are, for the time being, registered with the Commission for the purpose of voting on a draft code under clause 4 of Schedule 2

    KSO

    • (a) means the obligations that were set out in clause 5 of Schedule 1 of the constitution of Telecom (as it read immediately before the commencement of this Act); and

    • (b) includes—

      • (i) the letter of 1 October 1997 headed TELECOM DIRECTORY ASSISTANCE PROPOSAL, from the Minister of Finance to Telecom; and

      • (ii) the letter of 15 September 1999 headed TELECOM 0867 INITIATIVE, from the Minister of Finance to Telecom; and

      • (iii) the letter of 15 September 1999 headed TELECOM 0867 INITIATIVE, from Telecom to the Minister of Finance

    liable person, in relation to a TSO instrument, means (except when they are the TSO provider),—

    • (a) Telecom; and

    • (b) a person—

      • (i) whose network is interconnected with a fixed PSTN operated by Telecom; and

      • (ii) who provides a telecommunications service in New Zealand to end-users by means of some component of a PSTN that is operated by the person

    liable person: this definition was amended, as from 22 December 2006, by section 5(4) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the expression TSO provider for the expression TSP. See sections 62 to 66 of that Act for the transitional provisions.

    liable person's TSO-qualified revenue means the amount of revenue that, during the financial year, each liable person receives for supplying all or any of the following

    • (a) telecommunications services by means of its PSTN:

    • (b) telecommunications services by means that rely primarily on the existence of its PSTN or any other PSTN:

    • (c) directory services in respect of PSTN numbers

    liable person's TSO-qualified revenue: this definition was inserted, as from 22 December 2006, by section 5(5) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

    line

    • (a) means a wire or a conductor of any other kind (including a fibre optic cable) used or intended to be used for the transmission or reception of signs, signals, impulses, writing, images, sounds, instruction, information, or intelligence of any nature by means of any electromagnetic system; and

    • (b) includes—

      • (i) any pole, insulator, casing, fixture, tunnel, or other equipment or material used or intended to be used for supporting, enclosing, surrounding, or protecting any of those wires or conductors; and

      • (ii) any part of a line

    local authority means a local authority within the meaning of the Local Government Act 2002

    Local authority: this definition was substituted, as from 1 July 2003, by section 262 Local Government Act 2002 (2002 No 84). See sections 273 to 314 of that Act as to the savings and transitional provisions.

    local loop network

    [Repealed]

    local loop network: this definition was repealed, as from 22 December 2006, by section 5(6) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

    Minister means the Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of this Act

    net cost means the unavoidable net incremental costs to an efficient service provider of providing the service required by the TSO instrument to commercially non-viable customers

    network means a system comprising telecommunication links to permit telecommunication

    network operator means Telecom and any person declared under—

    • (a) section 105 to be a network operator for the purposes of this Act or any provision of this Act; or

    • (b) section 2A of the 1987 Act (as it read immediately before the commencement of this Act) to be a network operator for the purposes of that Act or any provision of that Act

    original KSO

    • (a) means the constitution of Telecom; and

    • (b) includes—

      • (i) the letter of 1 October 1997 headed TELECOM DIRECTORY ASSISTANCE PROPOSAL, from the Minister of Finance to Telecom; and

      • (ii) the letter of 15 September 1999 headed TELECOM 0867 INITIATIVE, from the Minister of Finance to Telecom; and

      • (iii) the letter of 15 September 1999 headed TELECOM 0867 INITIATIVE, from Telecom to the Minister of Finance

    party or parties means,—

    • (a) for a determination made under section 27 or a residual terms determination made under section 30ZB, the access seeker and the access provider of the service; and

    • (b) for a standard terms determination made under section 30M, a designated multinetwork service determination made under section 39, or an approved code under Schedule 2, all access seekers and all access providers of the service (whether they became an access seeker or an access provider before or after the determination was made or the code was approved); and

    • (c) for a registered undertaking under Schedule 3A, the access provider of the service and the Commission

    party or parties: this definition was substituted, as from 22 December 2006, by section 5(7) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

    PDN or public data network means a data network used, or intended for use, in whole or in part, by the public

    price includes—

    • (a) valuable consideration in any form, whether direct or indirect; and

    • (b) any consideration that in effect relates to the acquisition of goods or services or the acquisition or disposition of any interest in land, even though it ostensibly relates to any other matter or thing

    proposed addition has the meaning set out in clause 8(1)(b) of Schedule 3

    proposed alteration has the meaning set out in clause 1(1) of Schedule 3

    proposed omission has the meaning set out in clause 8(1)(a) of Schedule 3

    PSTN or public switched telephone network means a dial-up telephone network used, or intended for use, in whole or in part, by the public for the purposes of providing telecommunication between telephone devices

    public notice has the meaning set out in section 6

    qualified auditor means a person who is qualified for appointment as an auditor in accordance with any prescribed requirements or, if there are no prescribed requirements, any requirements of the Commission

    radio frequency means electromagnetic waves of frequencies between 9 kilohertz and 3000 gigahertz, propagated in space without artificial guide

    registered undertaking has the meaning set out in clause 1 of Schedule 3A

    registered undertaking: this definition was inserted, as from 22 December 2006, by section 5(8) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

    road includes—

    • (a) a street and any other place to which the public have access, whether as of right or not; and

    • (b) land that is vested in a local authority for the purpose of a road as shown on a deposited survey plan; and

    • (c) all bridges, culverts, ferries, and fords that form part of any road, street, or any other place referred to in paragraph (a) or paragraph (b)

    service provider means a provider of a telecommunications service

    specified amount has the meaning set out in section 71A

    specified amount: this definition was amended, as from 22 December 2006, by section 5(9) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the expression section 71A for the expression section 70(5). See sections 62 to 66 of that Act for the transitional provisions.

    specified service means a service described in Part 3 of Schedule 1

    subsidiary has the same meaning as in sections 5 and 6 of the Companies Act 1993

    Telecom

    • (a) means Telecom Corporation of New Zealand Limited; and

    • (b) includes any of its subsidiaries

    telecommunication

    • (a) means the conveyance by electromagnetic means from one device to another of any encrypted or non-encrypted sign, signal, impulse, writing, image, sound, instruction, information, or intelligence of any nature, whether for the information of any person using the device or not; and

    • (b) for the purposes of subpart 2 of Part 4, includes any conveyance that constitutes broadcasting; but

    • (c) for all other purposes, does not include any conveyance that constitutes broadcasting

    telecommunication: this definition was substituted, as from 17 May 2005, by section 3(2) Telecommunications Amendment Act 2005 (2005 No 70).

    telecommunication link means any line, radio frequency, or other medium used for telecommunication

    telecommunications access code has the meaning set out in section 7(1)

    Telecommunications Commissioner means the Telecommunications Commissioner appointed under section 9(3)

    telecommunications service means any goods, services, equipment, and facilities that enable or facilitate telecommunication

    TSO or telecommunications service obligations means obligations in relation to a TSO instrument

    TSO cost allocation determination means a determination prepared by the Commission in accordance with sections 87 to 91

    TSO cost allocation determination: this definition was inserted, as from 22 December 2006, by section 5(10) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

    TSO cost calculation determination means a determination prepared by the Commission in accordance with sections 92 to 93E

    TSO cost calculation determination: this definition was inserted, as from 22 December 2006, by section 5(10) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

    TSO instrument or telecommunications service obligation instrument

    • (a) means an instrument that is declared to be a TSO instrument under section 70; and

    • (b) to the extent that it applies, includes a deemed TSO instrument

    TSO provider or telecommunications service obligation provider means a provider of a telecommunications service under a TSO instrument

    TSO provider or telecommunications service obligation provider: this definition was inserted, as from 22 December 2006, by section 5(11) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

    TSO provider's TSO-qualified revenue means the amount of revenue that, during the financial year, each TSO provider receives for supplying all or any of the following

    • (a) telecommunications services by means of its PSTN:

    • (b) telecommunications services by means that rely primarily on the existence of its PSTN or any other PSTN:

    • (c) directory services in respect of PSTN numbers

    TSO provider's TSO-qualified revenue: this definition was inserted, as from 22 December 2006, by section 5(11) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

    TSP or telecommunications service provider

    [Repealed]

    TSP or telecommunications service provider: this definition was repealed, as from 22 December 2006, by section 5(11) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

    telephone device means any terminal device capable of being used for transmitting or receiving any communications over a network designed for the transmission of voice frequency communication

    working day means a day of the week other than—

    • (a) Saturday, Sunday, Good Friday, Easter Monday, Anzac Day, the Sovereign's Birthday, Labour Day, and Waitangi Day; and

    • (b) the day observed in the appropriate area as the anniversary of the province of which the area forms part; and

    • (c) a day in the period commencing with 25 December in any year and ending with 2 January in the following year; and

    • (d) if 1 January in any year falls on a Friday, the following Monday; and

    • (e) if 1 January in any year falls on a Saturday or a Sunday, the following Monday and Tuesday

    works includes—

    • (a) a line and any instrument, furniture, plant, office, building, machinery, engine, excavation, or work, of whatever description, used in relation to, or in any way connected with, a line; and

    • (b) a fixed radio station.

    Compare: 1987 No 116 s 2(1), (1A)

6 Public notice
  • (1) Subject to subsection (2), if, under this Act, the Commission is required to give public notice of any matter, the Commission must—

    • (a) publish a notice of the matter, or cause a notice of the matter to be published, in the Gazette; and

    • (b) at all reasonable times, make the matter available for inspection on the Commission's website in an electronic form that is publicly accessible.

    (2) If the Commission is required to give public notice of any matter under this Act, nothing in this Act requires the Commission to include in that public notice any information that would, in the opinion of the Commission, be likely to unreasonably prejudice the commercial position of the person who supplied, or who is the subject of, the information.

7 Telecommunications access codes
  • (1) In this Act, telecommunications access code means an access code for 1 or more—

    • (a) designated services or specified services:

    • (b) services supplied under a registered undertaking.

    (2) Schedule 2 sets out provisions that apply to telecommunications access codes.

    Subsection (1) was substituted, as from 22 December 2006, by section 6 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

8 Act binds the Crown
  • This Act binds the Crown.

Subpart 2Commerce Commission

Telecommunications Commissioner

9 Appointment of Telecommunications Commissioner
  • (1) There must be a Telecommunications Commissioner.

    (2) The Telecommunications Commissioner is a member of the Commission as provided in section 9(3) of the Commerce Act 1986.

    (3) Subject to subsection (4), the Telecommunications Commissioner must be appointed by the Governor-General on the recommendation of the Minister.

    (3A) Subsection (3) applies despite section 28(1)(b) of the Crown Entities Act 2004.

    (4) No person may be recommended for appointment as the Telecommunications Commissioner unless, in the opinion of the Minister, that person is qualified for appointment, having regard to the functions and powers of the Commission, whether under this Act or any other enactment.

    (5) For the purposes of subsection (4), a person is qualified for appointment by virtue of that person's knowledge of, or experience in, the telecommunications industry or any other industry, commerce, economics, law, accountancy, public administration, or consumer affairs.

    (6) Subsections (4) and (5) do not limit section 29 of the Crown Entities Act 2004.

    Subsection (2) was amended, as from 25 January 2005, by section 200 Crown Entities Act 2004 (2004 No 115) by inserting the words as provided in section 9(3) of the Commerce Act 1986.

    Subsection (3A) was inserted, as from 25 January 2005, by section 200 Crown Entities Act 2004 (2004 No 115).

    Subsection (6) was substituted, as from 25 January 2005, by section 200 Crown Entities Act 2004 (2004 No 115).

9A Functions of Commission in relation to sector monitoring and information dissemination
  • (1) In addition to the other functions conferred on the Commission by this Act, the Commission—

    • (a) must monitor competition in telecommunications markets and the performance and development of telecommunications markets; and

    • (b) may conduct inquiries, reviews, and studies (including international benchmarking) into any matter relating to the telecommunications industry or the long-term benefit of end-users of telecommunications services within New Zealand; and

    • (c) must make available reports, summaries, and information about the things referred to in paragraphs (a) and (b).

    (2) The function in subsection (1)(c) does not require the Commission to release all documents that the Commission produces or acquires under this section.

    Compare: 1986 No 5 s 25; 1986 No 121 s 6

    Section 9A was inserted, as from 22 December 2006, by section 7 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

10 Performance of Commission's functions
  • (1) Subject to subsection (2) and sections 15 and 17,—

    • (a) the Telecommunications Commissioner and 2 other members of the Commission must—

      • (i) make every determination in respect of a designated multinetwork service under section 39; and

      • (ii) make every pricing review determination under section 51; and

      • (iii) make every determination in respect of a TSO instrument under section 90; and

    • (b) the Telecommunications Commissioner must report to the Minister about every alteration to Schedule 1 in any of the ways set out in sections 65 to 67, and the report must include the views of 2 other members of the Commission; and

    • (c) every function of the Commission under this Act (other than any of the functions set out in paragraphs (a) and (b)) must be performed—

      • (i) by the Telecommunications Commissioner alone; or

      • (ii) if the Telecommunications Commissioner requests the chairperson of the Commission to make 2 other members of the Commission available for the performance of a particular function and the chairperson agrees to that request, by the Telecommunications Commissioner and 2 other members of the Commission.

    (2) If there is no Telecommunications Commissioner or if the Telecommunications Commissioner is for any reason unable to perform the functions of the Commission that would otherwise have been performed by him or her under this Act,—

    • (a) those functions must be performed by the chairperson of the Commission; and

    • (b) every reference in this Act to the Telecommunications Commissioner must, unless the context otherwise requires, be read as a reference to the chairperson of the Commission.

    (3) The chairperson of the Commission is responsible for determining which members of the Commission, other than the Telecommunications Commissioner, must perform the functions referred to in subsection (1).

    (4) The quorum requirements in section 15(4) of the Commerce Act 1986 do not apply if the Telecommunications Commissioner is performing functions alone under section 10(1)(c)(i).

    Section 10 was amended, as from 25 January 2005, by section 200 Crown Entities Act 2004 (2004 No 115) by substituting the word chairperson for the word Chairman in every case where it appears.

    Subsection (4) was inserted, as from 25 January 2005, by section 200 Crown Entities Act 2004 (2004 No 115).

Levy

11 Levy
  • (1) Every service provider, or class of service providers, specified in regulations made under subsection (3) must pay to the Minister, in each financial year or part financial year (as the case may require), a levy of an amount stated in, or calculated or set or reset in accordance with, those regulations for, or in connection with,—

    • (a) the performance of the Commission's functions and duties under this Act; and

    • (b) the exercise of the Commission's powers under this Act.

    (2) Subsection (1) applies irrespective of the fact that the regulations are made and come into effect after the date on which the financial year or part financial year commences.

    (3) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations—

    • (a) specifying the amounts of levies payable under this section:

    • (b) providing for the method by which those levies will be calculated:

    • (c) specifying the criteria and other requirements by and against which those levies will be set or reset:

    • (d) specifying the financial year or part financial year to which those levies apply:

    • (e) providing for the payment and collection of those levies:

    • (f) exempting any service provider or class of service providers from paying levies under this section:

    • (g) providing for waivers or refunds of the whole or any part of any levy paid by any service provider or class of service providers under this section.

12 Levy for first financial year or part financial year
  • (1) Every service provider, or class of service providers, specified in regulations made under subsection (3) must pay to the Minister, for the first financial year or part financial year (as the case may require), a levy of an amount stated in, or calculated or set or reset in accordance with, those regulations for, or in connection with,—

    • (a) the preparation of the performance of, and the performance of, the Commission's functions and duties under this Act; and

    • (b) the preparation of the exercise of, and the exercise of, the Commission's powers under this Act.

    (2) The levy for the first financial year or part financial year may include the costs incurred from 30 June 2001 by the Commission for, or in connection with, the matters set out in subsection (1)(a) or (b).

    (3) Subsections (1) and (2) apply irrespective of the fact that the regulations are made and come into effect after the date on which the first financial year or part financial year commences.

    (4) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations—

    • (a) specifying the amount of levy payable under this section:

    • (b) providing for the method by which the levy will be calculated:

    • (c) specifying the criteria and other requirements by and against which the levy will be set or reset:

    • (d) specifying the first financial year or part financial year to which the levy applies:

    • (e) providing for the payment and collection of the levy:

    • (f) exempting any service provider or class of service providers from paying the levy under this section:

    • (g) providing for waivers or refunds of the whole or any part of any levy paid by any service provider or class of service providers under this section.

13 Minister must consult before making recommendation under section 11(3) or section 12(4)
  • The Minister must not make any recommendation under section 11(3) or section 12(4) without first consulting those persons and organisations that the Minister considers appropriate having regard to the subject matter of the proposed regulations.

14 Late payment of levy
  • (1) If any service provider liable to pay the levy fails to pay the whole amount of that levy by the date specified in regulations made under section 11(3) or section 12(4), the service provider must pay interest on the unpaid amount at the rate of 1.5% per month calculated from the date payment is due.

    (2) Interest will be calculated in monthly instalments for each month, or part of each month, that the payment is due.

    (3) The amount of any unpaid levy or interest is recoverable in any court of competent jurisdiction as a debt due to the Crown.

Application of Commerce Act 1986

15 Application of Commerce Act 1986 and Crown Entities Act 2004
  • The following provisions of the Commerce Act 1986 apply with any necessary modifications:

    • (a) [Repealed]

    • (b) section 13 (termination of appointment of members):

    • (c) [Repealed]

    • (d) section 15 (except as provided in section 10(4) of this Act) (meetings of Commission):

    • (e) [Repealed]

    • (f) section 98 (Commission may require person to supply information or documents or give evidence):

    • (g) subject to section 16, sections 98A to 98G (Commission's powers of search and seizure):

    • (h) section 99 (powers of Commission to take evidence):

    • (i) section 100 (powers of Commission to prohibit disclosure of information, documents, and evidence):

    • (j) section 100A (Commission may state case for opinion of High Court):

    • (k) sections 101 (notices) and 102 (service of notices):

    • (l) section 103 (offences):

    • (m) section 104 (determinations of Commission):

    • (n) [Repealed]

    • (o) section 106 (proceedings privileged):

    • (p) section 106A (judicial notice):

    • (q) section 109 (Commission may prescribe forms).

    The heading to section 15 was amended, as from 25 January 2005, by section 200 Crown Entities Act 2004 (2004 No 115) by inserting the words and Crown Entities Act 2004 after the words Commerce Act 1986.

    Paragraph (a) was repealed, as from 25 January 2005, by section 200 Crown Entities Act 2004 (2004 No 115).

    Paragraph (c) was repealed, as from 25 January 2005, by section 200 Crown Entities Act 2004 (2004 No 115).

    Paragraph (d) was amended, as from 25 January 2005, by section 200 Crown Entities Act 2004 (2004 No 115) by substituting the words (except as provided in section 10(4) of this Act) for the words (except subsection (4)).

    Paragraph (e) was repealed, as from 25 January 2005, by section 200 Crown Entities Act 2004 (2004 No 115).

    Paragraph (n) was repealed, as from 25 January 2005, by section 200 Crown Entities Act 2004 (2004 No 115).

16 Application of section 98A of Commerce Act 1986
  • A search warrant may be issued under section 98A(2) of the Commerce Act 1986, and powers may be exercised under that warrant, only for the purposes of—

    • (a) ascertaining whether a person has done any of the following things:

      • (i) committed an offence against section 46(1)(b) or (c) or section 82(1) of this Act:

    • (b) obtaining information and documents that have been requested by the Commission under section 81(a) of this Act or section 98 of the Commerce Act 1986 and that have not been provided within the required time.

17 Telecommunications Commissioner to consent to delegation of some functions and powers of Commission
  • If there is a Telecommunications Commissioner, the Telecommunications Commissioner's consent must be first obtained for the delegation, under section 73 of the Crown Entities Act 2004, of a function or power of the Commission that would normally be performed or exercised by the Telecommunications Commissioner.

    The heading to section 17 was substituted, as from 25 January 2005, by section 200 Crown Entities Act 2004 (2004 No 115).

    Section 17 was amended, as from 25 January 2005, by section 200 Crown Entities Act 2004 (2004 No 115) by substituting the words section 73 of the Crown Entities Act 2004 for the words section 105 of the Commerce Act 1986.

Part 2
Designated services and specified services

Subpart 1Preliminary

18 Purpose
  • (1) The purpose of this Part and Schedules 1 to 3 is to promote competition in telecommunications markets for the long-term benefit of end-users of telecommunications services within New Zealand by regulating, and providing for the regulation of, the supply of certain telecommunications services between service providers.

    (2) In determining whether or not, or the extent to which, any act or omission will result, or will be likely to result, in competition in telecommunications markets for the long-term benefit of end-users of telecommunications services within New Zealand, the efficiencies that will result, or will be likely to result, from that act or omission must be considered.

    (3) Except as otherwise expressly provided, nothing in this Act limits the application of this section.

    (4) Subsection (3) is for the avoidance of doubt.

19 Commission and Minister must consider purpose set out in section 18 and additional matters
  • If the Commission or the Minister (as the case may be) is required under this Part or any of Schedules 1, 3, and 3A to make a recommendation, determination, or a decision, the Commission or the Minister must—

    • (a) consider the purpose set out in section 18; and

    • (b) if applicable, consider the additional matters set out in Schedule 1 regarding the application of section 18; and

    • (c) make the recommendation, determination, or decision that the Commission or Minister considers best gives, or is likely to best give, effect to the purpose set out in section 18.

    Section 19 was amended, as from 22 December 2006, by section 8(1) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the words Schedules 1, 3, and 3A for the words Schedules 1 to 3. See sections 62 to 66 of that Act for the transitional provisions.

    Paragraph (c) was amended, as from 22 December 2006, by section 8(2) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the word Commission for the word Commissioner. See sections 62 to 66 of that Act for the transitional provisions.

19A Commission to have regard to economic policies of Government
  • (1) In the exercise of its powers under Schedule 3, the Commission must have regard to any economic policies of the Government that are transmitted, in writing, to the Commission by the Minister.

    (2) The Minister must, as soon as practicable after transmitting a statement of economic policy of the Government to the Commission under subsection (1),—

    • (a) arrange for a copy of that statement to be published in the Gazette ; and

    • (b) present a copy of that statement to the House of Representatives.

    (3) To avoid doubt, a statement of economic policy of the Government transmitted to the Commission under this section is not a direction for the purposes of Part 3 of the Crown Entities Act 2004.

    Section 19A was inserted, as from 22 December 2006, by section 9 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

Subpart 2Determinations for designated access services and specified services

Application

20 Application
  • (1) An access seeker or an access provider of a designated access service or specified service may apply to the Commission for a determination of all or some of the terms on which the service must be supplied during the period of time specified in the application.

    (2) For the purposes of subsection (1), the terms on which the service must be supplied—

    • (a) may, in the case of a designated access service, include the price payable by the access seeker for the service; and

    • (b) must, in the case of a specified service, exclude the price payable by the access seeker for the service.

21 When application must be treated as application for pricing review determination
  • An application by an access seeker or an access provider of a designated access service for a determination that relates to the price payable by the access seeker for the service must be treated as an application for a pricing review determination under section 42 if the only term at issue is the discount specified in the applicable initial pricing principle.

22 When application may not be made
  • (1) Despite section 20, no person may apply for a determination if—

    • (a) [Repealed]

    • (b) [Repealed]

    • (c) that person has not made reasonable attempts to negotiate the terms of supply of the service with the person who would otherwise be a party to the determination; or

    • (ca) the standard terms development process for the service is proceeding or a standard terms determination for the service is in force; or

    • (d) the applicable conditions in relation to the service (if any) have not been met.

    (2) However, subsection (1)(ca) does not prevent a person from applying for a residual terms determination under section 30V.

    (3) The Commission may investigate whether subsection (1)(d) applies either at the time—

    • (a) it receives an application made under section 20; or

    • (b) it prepares a determination under section 27.

    (4) However, if the Commission is satisfied, at any time, that the applicable conditions in relation to the service have not been met, the Commission must discontinue—

    • (a) all of its investigation; or

    • (b) as the case may be, that part of its investigation that relates to the market in which those conditions have not been met.

    Paragraphs (a) and (b) were repealed, as from 22 December 2006, by section 10(1) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

    Paragraph (ca) was inserted, as from 22 December 2006, by section 10(2) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

    Subsections (2) to (4) were inserted, as from 22 December 2006, by section 10(3) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

22A Effect of application on existing agreement for supply of designated access service or specified service
  • (1) This section applies if an access seeker of a designated access service or specified service applies for a determination under section 27 while an agreement is in force between that access seeker and the access provider of the service for the supply of that service or of any other service.

    (2) The access provider must not, as a direct or indirect result of the access seeker making the application for the determination, act in a way that is, or is likely to be, prejudicial to the interests of the access seeker.

    (3) The access provider may discontinue the supply of the service under the agreement only if—

    • (a) a determination is made under section 27 for that service or a comparable service; and

    • (b) the access provider begins to supply the service on the terms specified in the determination.

    (4) Subsection (3) does not apply if, before the date on which the determination is made, the agreement—

    • (a) has already expired; or

    • (b) has been terminated for a reason that is unrelated to the making of the application.

    (5) If there is any inconsistency between the determination and the agreement, the determination prevails.

    Section 22A was inserted, as from 22 December 2006, by section 11 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

23 Requirements for application
  • An application made under section 20 must—

    • (a) be in writing; and

    • (b) be given in the prescribed manner, if any; and

    • (c) contain the prescribed information, if any; and

    • (d) be accompanied by the prescribed fee, if any.

Notification

24 Commission must notify parties
  • On receiving an application made in accordance with section 23, the Commission must—

    • (a) notify the parties to the determination in writing that the application has been received; and

    • (b) provide a copy of the application to the other party to the determination; and

    • (c) request the parties to the determination to comment on the matter by written notice to the Commission not later than 10 working days after receipt of the notice from the Commission.

Investigation

25 Commission must decide whether to investigate
  • (1) The Commission must make reasonable efforts to do the following things not later than 10 working days after the date by which the parties may comment on the application:

    • (a) decide whether or not to investigate the matter:

    • (b) give written notice of its decision to the parties:

    • (c) give public notice of its decision:

    • (d) request the parties to the determination to make submissions on the matter by written notice to the Commission not later than 10 working days after receipt of the notice from the Commission.

    (2) Subsection (1)(d) applies only if the Commission has decided under subsection (1)(a) to investigate the matter.

Consultation

26 Consultation or conferences
  • If the Commission considers that persons, other than the parties to the determination, have a material interest in the matter to be investigated, the Commission must, before preparing a determination under section 27, either consult those persons or hold conferences in relation to the matter.

Determination

27 Preparation of determination
  • After investigating the matter, the Commission must—

    • (a) prepare a determination; and

    • (b) give a copy of the determination to the parties to the determination; and

    • (c) give public notice of the determination.

28 When determination must be prepared
  • (1) The Commission must make reasonable efforts to prepare a determination under section 27,—

    • (a) if the determination does not include the price payable for the supply of the service, not later than 40 working days after it gave written notice under section 25(1)(b); or

    • (b) if the determination includes the price payable for the supply of the service, not later than 50 working days after it gave written notice under section 25(1)(b).

    (2) If, despite making reasonable efforts, the Commission is unable to do the things set out in subsection (1) within the relevant time limit, the Commission must give to the parties concerned written reasons for not meeting the relevant time limit.

29 Requirements for determination
  • A determination must, in the opinion of the Commission,—

    • (a) be made in accordance with—

      • (i) the applicable access principles and any limits on those applicable access principles; and

      • (ii) any regulations made in respect of the applicable access principles and any limits on those applicable access principles; and

    • (b) comply with any relevant approved codes; and

    • (c) in the case of a determination regarding a designated access service, be made in accordance with—

      • (i) the applicable initial pricing principle (as affected, if at all, by clause 2 or clause 3 of Schedule 1); and

      • (ii) any regulations that specify how the applicable initial pricing principle must be applied.

30 Matters to be included in determination
  • (1) A determination must include—

    • (a) the terms on which the service must be supplied; and

    • (b) the reasons for the determination; and

    • (c) the terms and conditions (if any) on which the determination is made; and

    • (d) the actions (if any) that a party to the determination must do or refrain from doing; and

    • (e) the expiry date of the determination.

    (2) To avoid doubt, a determination may also include, without limitation, terms concerning any or all of the following matters:

    • (a) dispute resolution procedures:

    • (b) the consequences of a breach of the determination (including provision for set-off or withholding rights, or liquidated damages):

    • (c) suspension and termination of the service:

    • (d) procedures for, or restrictions on, assignment of the service.

    Subsection (2) was inserted, as from 22 December 2006, by section 12 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

Subpart 2AStandard terms determinations for designated access services and specified services

Preliminary

30A Overview of subpart
  • (1) This subpart enables the Commission to make, as an alternative to a determination made under section 27, a determination of the terms on which a designated access service or specified service must be supplied with reference to all access seekers and all access providers of the service.

    (2) Accordingly, this subpart—

    • (a) provides a process for the development of standard terms for the supply of the service (sections 30C to 30J):

    • (b) provides for the Commission to make, and review, a standard terms determination (sections 30K to 30R):

    • (c) specifies how a standard terms determination is to apply (section 30S):

    • (d) clarifies the interface between a determination made under section 27 and a standard terms determination (section 30T):

    • (e) provides a mechanism that allows parties to a standard terms determination to apply for a residual terms determination if they wish to adjust, as between themselves, the application of terms specified in the standard terms determination (sections 30U to 30ZD).

    (3) This section is intended only as a guide to the general scheme and effect of this subpart.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30B Interpretation
  • In this subpart,—

    change in circumstances, in relation to the price payable for a service, means any change in relevant circumstances since the last date on which that price was calculated (for example, any change to the terms of the service)

    regulated terms means the terms set by any New Zealand or overseas regulator for any telecommunications service.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

Standard terms development process

30C When standard terms development process may be initiated
  • (1) The Commission may, on its own initiative, initiate the standard terms development process for a designated access service or specified service.

    (2) However, the Commission may not initiate that standard terms development process if the applicable conditions in relation to the service (if any) have not been met.

    (3) The Commission may investigate whether the applicable conditions in relation to the service have been met either—

    • (a) before deciding to initiate the standard terms development process; or

    • (b) at the time it prepares a standard terms determination under section 30M.

    (4) However, if the Commission is satisfied, at any time, that the applicable conditions in relation to the service have not been met, the Commission must discontinue—

    • (a) all of its investigation; or

    • (b) as the case may be, that part of its investigation that relates to the market in which those conditions have not been met.

    (5) For the purposes of subsection (1), the Commission may, if it considers it appropriate in the circumstances, initiate a single combined standard terms development process for 2 or more designated access services or specified services.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30D Commission must give public notice if Commission initiates standard terms development process
  • The Commission must give public notice that it has initiated the standard terms development process for a designated access service or specified service not later than 10 working days after initiating that process under section 30C.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30E Commission must conduct scoping workshop
  • (1) The Commission must conduct 1 or more scoping workshops in relation to a designated access service or specified service.

    (2) The purpose of a scoping workshop is to provide the Commission with information to assist it in specifying—

    • (a) a reasonable period of time within which an access provider must submit a standard terms proposal under section 30F; and

    • (b) any additional requirements for that proposal under section 30F(2).

    (3) A scoping workshop must be—

    • (a) open to all parties to the standard tells determination; and

    • (b) conducted by an employee or agent of the Commission in a manner, and within the time, that the Commission thinks fit.

    (4) To avoid doubt, this section does not prevent the Commission from conducting a workshop in relation to any other matter, nor does it affect the matters that may be considered by the Commission in any other workshop.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

Standard terms proposal

30F Call for standard terms proposal
  • (1) After giving public notice under section 30D and conducting a scoping workshop under section 30E, the Commission must—

    • (a) give written notice to 1 or more access providers of the designated access service or specified service requiring them to submit to the Commission, by the date specified in the notice, a standard terms proposal that complies with section 30G; and

    • (b) give public notice of that requirement.

    (2) The Commission may include in the written notice under subsection (1)(a) any additional requirements that it thinks fit to specify, having regard to any relevant matters (for example, the terms and conditions of any commercial agreement or regulated terms for any service in New Zealand or overseas).

    (3) An access provider of the designated access service or specified service to whom written notice is given under subsection (1)(a) must comply with the requirement or requirements contained in that notice.

    (4) The written notice under subsection (1)(a) must be accompanied by a copy of—

    • (a) section 30G; and

    • (b) any additional requirements that the Commission specifies under subsection (2).

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30G Requirements for standard terms proposal
  • (1) A standard terms proposal must—

    • (a) specify sufficient terms to allow, without the need for the access seeker to enter into an agreement with the access provider, the designated access service or specified service to be made available within the time frames specified under paragraph (c); and

    • (b) provide an explanation of, and reasons for, those terms; and

    • (c) state the time frames within which the access provider must make the service available to—

      • (i) every person who is already an access seeker when the standard terms determination is made; and

      • (ii) every person who becomes an access seeker after the standard terms determination is made; and

    • (d) be consistent with the description of the service in Part 2 or Part 3 of Schedule 1, as the case may be; and

    • (e) be consistent with the applicable access principles and any limits on those applicable access principles; and

    • (f) comply with any additional requirements that the Commission has specified under section 30F(2).

    (2) The terms referred to in subsection (1)(a)

    • (a) must include the price payable for the supply of the service if that price has been determined in accordance with the applicable initial pricing principle or the applicable final pricing principle in a previous determination made under section 27; or

    • (b) must not include that price if that is not the case.

    (3) The Commission may refuse to consider a standard terms proposal that—

    • (a) fails to comply with this section:

    • (b) is submitted late.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30H Failure to submit standard terms proposal
  • (1) If an access provider of a designated access service or specified service fails to submit, in response to a notice under section 30F, a standard terms proposal that complies with section 30G, the Commission may—

    • (a) give written notice to another access provider, or an access seeker of the service requesting that access provider or, as the case may be, that access seeker to submit to the Commission, by a further date specified in the notice, a standard terms proposal that complies with section 30G:

    • (b) prepare a draft standard terms determination under section 30K even though it has not received a standard terms proposal from an access provider or an access seeker of the service.

    (2) The written notice under subsection (1)(a) must be accompanied by a copy of—

    • (a) section 30G; and

    • (b) any additional requirements that the Commission specifies under section 30F(2).

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30I Receipt of standard terms proposal
  • As soon as practicable after receiving a standard terms proposal that complies with section 30G, the Commission must make reasonable efforts to do the following things:

    • (a) notify all parties to the determination in writing that the proposal has been received:

    • (b) give public notice of the receipt of the proposal:

    • (c) include in the public notice—

      • (i) information about where a copy of the proposal may be viewed and obtained; and

      • (ii) the closing date for submissions on the proposal.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30J Requirement for submissions
  • A submission to the Commission on a standard terms proposal—

    • (a) may be made about any matter to which the proposal relates; but

    • (b) must set out the wording of any additional or alternative terms that are proposed to be included in the standard terms determination.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

Draft standard terms determination

30K Draft standard terms determination
  • (1) The Commission must make reasonable efforts to do the following things not later than 60 working days after the closing date for submissions on a standard terms proposal:

    • (a) determine the terms on which the service must be supplied; and

    • (b) prepare a draft standard terms determination containing those terms; and

    • (c) provide a copy of the draft standard terms determination to all parties to the determination; and

    • (d) give public notice of the draft standard terms determination; and

    • (e) include in the public notice the closing date for submissions.

    (2) A draft standard terms determination for a designated access service must also include,—

    • (a) if the price or prices payable for the service have been determined in accordance with the applicable final pricing principle in a determination made under section 51, either of the following:

      • (i) that price or those prices; or

      • (ii) an updated calculation of that price or those prices if the Commission considers it to be necessary because of a change in circumstances; or

    • (b) if paragraph (a) does not apply, and the price or prices payable for the service have been determined in accordance with the applicable initial pricing principle in a determination made under section 27, any of the following:

      • (i) that price or those prices; or

      • (ii) an updated calculation of that price or those prices if the Commission considers it to be necessary because of a change in circumstances; or

      • (iii) if the price or prices referred to in subparagraph (i) or (ii) are higher than the existing price charged by the relevant access provider to the majority of its access seekers for the service, that existing price; or

    • (c) if neither paragraph (a) nor paragraph (b) applies, the price or prices determined by the Commission in accordance with the applicable initial pricing principle.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30L Consultation or conferences
  • If the Commission considers that persons other than the parties to the determination have a material interest in a standard terms determination, the Commission must, before preparing the standard terms determination under section 30M, either consult those persons or hold conferences in relation to the matter.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

Standard terms determination

30M Standard terms determination
  • As soon as practicable after completing any consultation or conferences under section 30L, or if there is no consultation or there are no conferences, after the closing date for submissions under section 30K(1)(e), the Commission must—

    • (a) prepare a standard terms determination; and

    • (b) provide a copy of the standard terms determination to all parties to the determination; and

    • (c) give public notice of the standard terms determination.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30N Commission's discretion to determine how standard terms determination is to be prepared
  • (1) The Commission may, if it considers it appropriate in the circumstances, comply with section 30M(a) by preparing—

    • (a) a standard terms determination relating to 2 or more designated access services or specified services that contains—

      • (i) terms of general application to all the services to which the standard terms determination relates; and

      • (ii) a separate schedule for each of those services that includes terms of specific application to that service; or

    • (b) a separate standard terms determination for each designated access service or specified service.

    (2) Instead of preparing a standard terms determination in each case, the Commission may also comply with section 30M(a) by adding a separate schedule that contains terms of specific application to a particular designated access service or specified service to an existing standard terms determination of the kind referred to in subsection (1)(a).

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30O Matters to be included in standard terms determination: general
  • (1) A standard terms determination must—

    • (a) specify sufficient terms to allow, without the need for the access seeker to enter into an agreement with the access provider, the designated access service or specified service to be made available within the time frames specified under paragraph (b); and

    • (b) state the time frames within which the access provider must make the service available to—

      • (i) every person who is already an access seeker when the standard terms determination is made; and

      • (ii) every person who becomes an access seeker after the standard terms determination is made; and

    • (c) specify the reasons for the standard terms determination; and

    • (d) specify the terms and conditions (if any) on which the standard terms determination is made; and

    • (e) specify the actions (if any) that a party to the standard terms determination must take or refrain from taking.

    (2) To avoid doubt, a standard terms determination may also include, without limitation, terms concerning any or all of the following matters:

    • (a) dispute resolution procedures:

    • (b) the consequences of a breach of the determination (including provision for set-off or withholding rights, or liquidated damages):

    • (c) suspension and termination of the service:

    • (d) procedures for, or restrictions on, assignment of the service.

    (3) The Commission must identify which of the terms (if any) specified in a standard terms determination are allowed to be varied, on an application made under section 30V by a party to that determination, under a residual terms determination.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30P Additional matters to be included in standard terms determination for designated access service
  • (1) In addition to the matters set out in section 30O, a standard terms determination for a designated access service must also include,—

    • (a) if the price or prices payable for the service have been determined in accordance with the applicable final pricing principle in a determination made under section 51, either of the following:

      • (i) that price or those prices; or

      • (ii) an updated calculation of that price or those prices if the Commission considers it to be necessary because of a change in circumstances; or

    • (b) if paragraph (a) does not apply, and the price or prices payable for the service have been determined in accordance with the applicable initial pricing principle in a determination made under section 27, any of the following:

      • (i) that price or those prices; or

      • (ii) an updated calculation of that price or those prices if the Commission considers it to be necessary because of a change in circumstances; or

      • (iii) if the price or prices referred to in subparagraph (i) or (ii) are higher than the existing price charged by the relevant access provider to the majority of its access seekers for the service, that existing price; or

    • (c) if neither paragraph (a) nor paragraph (b) applies, the price or prices determined by the Commission in accordance with the applicable initial pricing principle.

    (2) A standard terms determination for a designated access service may also include any other terms concerning the price for the service that the Commission considers relevant.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30Q Standard terms determination not to include expiry date
  • A standard terms determination must not include an expiry date for the determination.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30R Review of standard terms determination
  • (1) The Commission may, on its own initiative, commence a review, at any time, of all or any of the terms specified in a standard terms determination.

    (2) The Commission may replace a standard terms determination or vary, add, or delete any of its terms, if it considers it necessary to do so after conducting a review.

    (3) In exercising the power conferred by subsection (2), the Commission may specify how and when a replacement standard terms determination, or a variation, addition, or deletion of terms specified in the determination, takes effect in relation to—

    • (a) the initial standard terms determination:

    • (b) any relevant residual terms determination.

    (4) The Commission may conduct a review in the manner, and within the time, that it thinks fit.

    (5) The Commission must—

    • (a) consult all parties to the determination on the review; and

    • (b) give public notice of the commencement of the review; and

    • (c) include in the public notice under paragraph (b) the closing date for submissions; and

    • (d) give public notice of the result of the review.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

Application of standard terms determination

30S Application of standard terms determination
  • (1) If the Commission has made a standard terms determination for a designated access service or specified service,—

    • (a) an access seeker of the service may request an access provider in writing to supply the service on the terms specified in that determination; and

    • (b) the access provider must comply with the request.

    (2) However, subsection (1) does not apply if,—

    • (a) after the date on which the standard terms determination for the service was made, the access seeker and the access provider entered into an agreement for the supply of the service; and

    • (b) it is less than 18 months since the date on which that agreement came into force.

    (3) In complying with a request from an access seeker under subsection (1), the access provider must, if the Commission has made a residual terms determination for the service under section 30ZB in relation to that access seeker and that access provider, supply the service to that access seeker on the terms specified in that determination, as well as on the terms specified in the standard terms determination.

    (4) However, if there is any inconsistency between the terms specified in a residual terms determination in relation to that access seeker and that access provider and the terms specified in a standard terms determination, the terms specified in the residual terms determination prevail.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30T Effect of standard terms determination on determination made under section 27
  • (1) This section applies if—

    • (a) a determination for a designated access service or specified service is made under section 27; and

    • (b) that determination is still in force at the time a standard terms determination is made for the service.

    (2) An access seeker of the service who is a party to the determination made under section 27 may request the access provider in writing to supply the service on the terms specified in the standard terms determination.

    (3) The access provider must comply with the request.

    (4) The determination made under section 27 expires on the date on which the access provider begins to supply the service on the terms specified in the standard terms determination.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

Residual terms determination

30U Purpose of residual terms determination
  • (1) The purpose of a residual terms determination is to allow the Commission, on the application of a party to a standard terms determination, to adjust the terms for the supply of a designated access service or specified service that are specified in the standard terms determination.

    (2) To that end, a residual terms determination may—

    • (a) address matters that were not addressed in the standard terms determination; and

    • (b) vary any terms in the standard terms determination that the Commission has identified under section 30O(3) as being allowed to be varied.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30V Application for residual terms determination
  • (1) An access seeker of a designated access service or specified service who is a party to a standard terms determination may apply to the Commission for a residual terms determination of any terms on which the service must be supplied.

    (2) If an access seeker applies for a residual terms determination under subsection (1), the access provider of the service may also apply to the Commission for a residual terms determination of any terms on which the access provider considers the service must be supplied.

    (3) To avoid doubt, an application under this section—

    • (a) may only be made if the Commission has made a standard terms determination for the service; and

    • (b) may seek either or both of the following:

      • (i) a determination of matters that were not addressed in the standard terms determination:

      • (ii) a variation of any terms in the standard terms determination that the Commission has identified under section 30O(3) as being allowed to be varied.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30W When application may not be made
  • (1) Despite section 30V, no person may apply for a residual terms determination if—

    • (a) all of the following apply:

      • (i) the persons who would otherwise be parties to the determination have an agreement for the supply of the service; and

      • (ii) that agreement was entered into after the date on which the relevant standard terms determination was made; and

      • (iii) it is less than 18 months since the date on which that agreement came into force; or

    • (b) that person has not made reasonable attempts to negotiate the terms that are sought in the application for the residual terms determination with the person who would otherwise be a party to that determination; or

    • (c) that person has previously applied for a residual terms determination for the service and it is less than 18 months since the date on which that determination was made; or

    • (d) it is less than 18 months since the date on which the access provider began to supply the service on the terms specified in the standard terms determination in accordance with a request made by the access seeker under section 30S(1); or

    • (e) the applicable conditions in relation to the service (if any) have not been met.

    (2) However, subsection (1)(d) does not prevent an access seeker from applying for a residual terms determination at any time before the access provider begins to supply the service on the terms specified in a standard terms determination in accordance with a request made by the access seeker under section 30S(1).

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30X Requirements for application
  • An application made under section 30V must—

    • (a) be in writing; and

    • (b) be given in the prescribed manner, if any; and

    • (c) contain the prescribed information, if any; and

    • (d) be accompanied by the prescribed fee, if any.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30Y Commission must notify parties
  • On receiving an application made in accordance with section 30X must—

    • (a) notify the parties to the determination in writing that the application has been received; and

    • (b) provide a copy of the application to the other party to the determination; and

    • (c) request the parties to the determination to comment on the matter by written notice to the Commission not later than 10 working days after receipt of the notice from the Commission.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30Z Commission must decide whether to investigate
  • (1) The Commission must make reasonable efforts to do the following things not later than 10 working days after the date by which the parties may comment on the application:

    • (a) decide whether or not to investigate the matter:

    • (b) give written notice of its decision to the parties:

    • (c) give public notice of its decision:

    • (d) request the parties to the residual terms determination to make submissions on the matter by written notice to the Commission not later than 10 working days after receipt of the notice of decision from the Commission.

    (2) Subsection (1)(d) applies only if the Commission has decided under subsection (1)(a) to investigate the matter.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30ZA Consultation or conferences
  • If the Commission considers that persons other than the parties to the determination have a material interest in the residual terms determination, the Commission may either consult those persons or hold conferences in relation to the matter.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30ZB Preparation of residual terms determination
  • After investigating the matter, the Commission must—

    • (a) prepare a residual terms determination; and

    • (b) give a copy of the determination to the parties to the determination; and

    • (c) give public notice of the determination.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30ZC Requirements for residual terms determination
  • A residual terms determination must, in the opinion of the Commission,—

    • (a) be made in accordance with—

      • (i) the applicable access principles and any limits on those applicable access principles; and

      • (ii) any regulations made in respect of the applicable access principles and any limits on those applicable access principles; and

    • (b) comply with any relevant approved codes.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

30ZD Matters to be included in residual terms determination
  • A residual terms determination must include—

    • (a) the terms on which the service must be supplied; and

    • (b) the reasons for the determination; and

    • (c) the terms and conditions (if any) on which the determination is made; and

    • (d) the actions (if any) that a party to the determination must take or refrain from taking; and

    • (e) the expiry date of the determination.

    Subpart 2A (comprising sections 30A to 30ZD) was inserted, as from 22 December 2006, by section 13 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

Subpart 3Determinations for designated multinetwork services

Commission may initiate process for designated multinetwork service determination on own initiative

  • This heading was inserted, as from 22 December 2006, by section 14 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

31AA Commission may initiate process for designated multinetwork service determination on own initiative
  • (1) The Commission may, on its own initiative, initiate the process for a determination of—

    • (a) the functions that must be performed by a system for delivering a designated multinetwork service and the standard to which those functions must be performed; and

    • (b) the formula for how the cost of delivering the service must be apportioned between the access seeker and all access providers of the service.

    (2) The Commission may decide to initiate that process only if it is satisfied that there are reasonable grounds for doing so.

    Section 31AA was inserted, as from 22 December 2006, by section 14 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

Application

31 Application
  • An access seeker of a designated multinetwork service may apply to the Commission for a determination of—

    • (a) the functions that must be performed by a system for delivering the service and the standard to which those functions must be performed; and

    • (b) the formula for how the cost of delivering the service must be apportioned between the access seeker and all access providers of the service.

32 When application may not be made
  • Despite section 31, no person may apply for a determination—

    • (a) of any matters that an approved code already provides for; or

    • (b) if the Commission has already made a determination in respect of the designated multinetwork service and the determination has not expired; or

    • (c) if there is an agreement between the access seeker and all access providers for the supply of the service and the agreement provides for all of the matters set out in section 31.

33 Requirements for application
  • An application under section 31 must—

    • (a) be in writing; and

    • (b) be given in the prescribed manner, if any; and

    • (c) contain the prescribed information, if any; and

    • (d) be accompanied by the prescribed fee, if any.

Notification

34 Commission must notify parties
  • On initiating the process for a designated multinetwork service determination under section 31AA or on receiving an application made in accordance with section 33, the Commission must—

    • (a) notify all the parties to the determination in writing that it has initiated that process or received the application, as the case may be; and

    • (b) for an application made in accordance with section 33, provide a copy of the application to all access providers of the service; and

    • (c) request all the parties to the determination to comment on the matter by written notice to the Commission not later than 10 working days after receipt of the notice from the Commission.

    Section 34 was substituted, as from 22 December 2006, by section 15 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

Investigation

35 Commission must decide whether to investigate
  • The Commission must make reasonable efforts to do the following things not later than 10 working days after the date by which the parties may comment on the matter:

    • (a) decide whether or not to investigate the matter:

    • (b) give written notice of its decision to all the parties to the determination:

    • (c) give public notice of its decision.

    Section 35 was amended, as from 22 December 2006, by section 16 Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the word matter for the word application. See sections 62 to 66 of that Act for the transitional provisions.

Draft determination

36 Draft determination
  • (1) The Commission must make reasonable efforts to do the following things not later than 60 working days after it gave written notice under section 35(b)

    • (a) prepare a draft determination; and

    • (b) give a copy of the draft determination to all the parties to the determination; and

    • (c) give public notice of the draft determination; and

    • (d) include in the public notice—

      • (i) the closing date for submissions, which must not be earlier than 20, and not later than 40, working days after the date of publication of the draft determination; and

      • (ii) if a public hearing is to be held under section 38, the date of the public hearing.

    (2) If, despite making reasonable efforts, the Commission is unable to do all the things set out in subsection (1) within the time limit specified in that subsection, the Commission must give to the parties concerned written reasons for not meeting that time limit.

37 Matters to be included in draft determination
  • (1) Subject to subsection (2), the draft determination must include—

    • (a) a description of the functions that must be performed by a system for delivering the service and the standard to which those functions must be performed; and

    • (b) the formula for how the cost of delivering the service must be apportioned between the parties to the determination and every person who becomes an access provider after the determination is made; and

    • (c) the reasons for the determination; and

    • (d) the terms and conditions on which the determination is proposed to be made; and

    • (e) the actions (if any) that a party to the determination must do or refrain from doing; and

    • (f) the proposed expiry date of the determination.

    (2) Subsection (1)(a) applies only to the extent that the matters referred to in that paragraph have not already been provided for in an approved code.

38 Consultation, conferences, or public hearing
  • The Commission may consult with interested parties, hold conferences, or, if it is satisfied that it is in the public interest to do so, hold a public hearing, in relation to a draft designated multinetwork service determination.

Determination

39 Determination
  • As soon as practicable after completing any consultation, conferences, or any public hearing under section 38, or if there is no consultation, conferences, or public hearing, after the closing date for submissions under section 36(1)(d)(i), the Commission must,—

    • (a) prepare a determination; and

    • (b) give a copy of the determination to all the parties to the determination; and

    • (c) give public notice of the determination.

40 Matters to be included in determination
  • (1) Subject to subsection (2), a designated multinetwork service determination must include—

    • (a) the functions that must be performed by a system for delivering the service and the standard to which those functions must be performed; and

    • (b) the formula for how the cost of delivering the service must be apportioned between the parties to the determination and every person who becomes an access provider after the determination is made; and

    • (c) the requirement that all the parties to the determination provide the service by means of a system that is consistent with the functions and the standards set out in the determination; and

    • (d) the requirement that any party to the determination make payments to an access provider of amounts calculated in accordance with the formula set out in the determination; and

    • (e) the reasons for the determination; and

    • (f) the terms and conditions (if any) on which the determination is made; and

    • (g) the actions (if any) that a party to the determination must do or refrain from doing; and

    • (h) the expiry date of the determination.

    (2) Subsection (1)(a) applies only to the extent that the matters referred to in that paragraph have not already been provided for in an approved code.

41 Determinations not invalid for certain failures
  • (1) If the Commission omits to do any of the things listed in subsection (2), that omission does not in any way affect the validity of the determination to which the omission relates.

    (2) The things referred to in subsection (1) are as follows:

    • (a) to notify any party to a determination under section 34(a):

    • (b) to provide a copy of an application for a determination to an access provider under section 34(b):

    • (c) to give a copy of the draft determination to a party to the determination under section 36(1)(b):

    • (d) to give a copy of the determination to a party under section 39(b).

Subpart 4Pricing review determinations for designated access services

Application

42 Application
  • (1) If a determination is made under section 27 or section 30M regarding the price payable for a designated access service, a party to the determination may apply for a review of that part of the determination that relates to the price to be paid for the service.

    (1A) However, subsection (1) does not apply in relation to a determination made under section 30M if the price to be paid for the service was included in that determination under section 30P(1)(a).

    (2) A determination made under section 27 or section 30M continues to have effect and is enforceable pending the making of a pricing review determination.

    (3) A party to a determination made under section 27 or section 30M that relates to the price payable for a designated access service may apply for a review of any discount specified in the applicable initial pricing principle for the service.

    (4) Subsections (2) and (3) are for the avoidance of doubt.

    Section 42 was amended, as from 22 December 2006, by section 17(1) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by inserting the words or section 30M after the expression section 27 wherever it appears. See sections 62 to 66 of that Act for the transitional provisions.

    Subsection (1A) was inserted, as from 22 December 2006, by section 17(2) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

43 Requirements for application
  • An application under section 42 must—

    • (a) be in writing; and

    • (b) be given to the Commission not later than 25 working days after,—

      • (i) for a determination made under section 27, the date on which the person received the copy of the determination; and

      • (ii) for a standard terms determination made under section 30M, the date on which public notice of that determination is given under section 30M(c).

    • (c) be given in the prescribed manner, if any; and

    • (d) contain the prescribed information, if any; and

    • (e) be accompanied by the prescribed fee, if any.

    Paragraph (b) was substituted, as from 22 December 2006, by section 18 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Notification

44 Commission's requirements on receiving application
  • On receiving an application made in accordance with section 43, the Commission must—

    • (a) notify the parties to the determination in writing that the application has been received; and

    • (b) provide a copy of the application to the other party or parties to the determination (as the case requires); and

    • (c) request the parties to the determination to comment on the matter by written notice to the Commission not later than 10 working days after receipt of the notice from the Commission; and

    • (d) give public notice of the application.

    Paragraph (b) was amended, as from 22 December 2006, by section 19 Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the words party or parties to the determination (as the case requires) for the words party to the determination.

Calculation of price

45 Access provider to calculate price on request
  • (1) On receiving an application made in accordance with section 43, the Commission may, by notice in writing, require an access provider to calculate the price payable for the designated access service.

    (2) If an access provider is requested, under subsection (1), to calculate the price payable for the designated access service, the access provider must, not later than the time specified by the Commission,—

    • (a) calculate that price in accordance with—

      • (i) the applicable final pricing principle (as affected, if at all, by clause 2 or clause 3 of Schedule 1); and

      • (ii) any regulations that relate to the applicable final pricing principle or, if there are no regulations, any requirements of the Commission.

    • (b) provide to the Commission—

      • (i) a statement that sets out how the price was calculated; and

      • (ii) all information on which the calculation of the price was based.

    (3) Subsection (2) is subject to the requirement (if any) set out in subpart 1 of Part 2 of Schedule 1 in respect of the applicable final pricing principle.

    Subsection (1) was amended, as from 22 December 2006, by section 20(1) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the words an access provider for the words the access provider. See sections 62 to 66 of that Act for the transitional provisions.

    Subsection (2) was amended, as from 22 December 2006, by section 20(2) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the words an access provider for the words the access provider where it first appears. See sections 62 to 66 of that Act for the transitional provisions.

    Subsection (2)(a)(ii) was substituted, as from 22 December 2006, by section 20(3) Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

46 Offences
  • [Repealed]

    Section 46 was repealed, as from 22 December 2006, by section 21 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Draft determination

47 Draft pricing review determination
  • As soon as practicable after the completion of any requirements under section 45 or, if the Commission does not make a request under that section or under subpart 1 of Part 2 of Schedule 1, after receiving an application under section 42, the Commission must—

    • (a) prepare a draft pricing review determination; and

    • (b) give a copy of the draft pricing review determination to the parties to the determination; and

    • (c) give public notice of the draft pricing review determination; and

    • (d) include in the public notice the closing date for submissions, which must not be later than 30 working days after the date of publication of the draft determination.

48 Requirements for draft determination
  • In preparing the draft pricing review determination, the Commission—

    • (a) must consider any calculation made under section 45; and

    • (b) may consider any matters included in a determination made under section 27 that relate to the price payable for the designated access service, and may make a determination in respect of those matters.

49 Matters to be included in draft determination
  • The draft pricing review determination must include—

    • (a) the price payable for the designated access service, which, in the opinion of the Commission, is determined in accordance with—

      • (i) the applicable final pricing principle (as affected, if at all, by clause 2 or clause 3 of Schedule 1); and

      • (ii) any regulations that relate to the applicable final pricing principle or, if there are no regulations, any requirements of the Commission; and

    • (b) if the Commission has considered any matters that relate to the price payable for the designated access service under section 48(b), the Commission's determination (if any) of those matters; and

    • (c) the reasons for the determination; and

    • (d) the terms and conditions on which the determination is proposed to be made; and

    • (e) the actions (if any) that a party to the determination must do or refrain from doing; and

    • (f) the proposed expiry date of the determination.

    Paragraph (a)(ii) was substituted, as from 22 December 2006, by section 22 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Consultation

50 Consultation or conferences
  • If the Commission considers that persons, other than the parties to the determination, have a material interest in the matter to be determined, the Commission must, before preparing a determination under section 51, either consult those persons or hold conferences in relation to the matter.

Determination

51 Pricing review determination
  • (1) As soon as practicable after completing any consultation or conferences under section 50, the Commission must—

    • (a) prepare the pricing review determination; and

    • (b) give a copy of the determination to the parties to the determination; and

    • (c) give public notice of the determination.

    (2) To avoid doubt, a determination made under section 27 continues to have effect and is enforceable to the extent that it has not been altered by a pricing review determination.

52 Matters to be included in determination
  • A pricing review determination must include—

    • (a) the price payable for the designated access service, which, in the opinion of the Commission, is determined in accordance with—

      • (i) the applicable final pricing principle (as affected, if at all, by clause 2 or clause 3 of Schedule 1); and

      • (ii) any regulations that relate to the applicable final pricing principle or, if there are no regulations, any requirements of the Commission; and

    • (b) if the Commission has considered any matters that relate to the price payable for the designated access service under section 48(b) and has made a determination in respect of those matters, that determination; and

    • (c) the reasons for the pricing review determination and the determination referred to in paragraph (b) (if any); and

    • (d) the terms and conditions (if any) on which the pricing review determination and the determination referred to in paragraph (b) (if any) is made; and

    • (e) the actions (if any) that a party to the determination must do or refrain from doing; and

    • (f) the expiry date of the determination.

    Paragraph (a)(ii) was substituted, as from 22 December 2006, by section 23 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Subpart 5Supplementary provisions for all determinations

53 Procedure for determinations
  • For a determination made under this Part, the Commission—

    • (a) is not bound by technicalities, legal forms, or rules of evidence:

    • (b) may inform itself of any matter relevant to the determination in any way it thinks appropriate:

    • (c) must consider all submissions made in relation to the determination and all information and opinions presented or expressed at any conference or public hearing in relation to the determination.

54 Applicant may withdraw
  • (1) An applicant in respect of a determination (except a standard terms determination or a designated multinetwork determination) may, at any time, withdraw the application by written notice to the Commission.

    (2) If the Commission receives a notice of withdrawal under subsection (1), then it must—

    • (a) notify all the parties to the determination of the withdrawal; and

    • (b) cease preparation of the determination concerned; and

    • (c) determine any costs under sections 55 and 56.

    Subsection (1) was amended, as from 22 December 2006, by section 24 Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by inserting the words a standard terms determination or after the word except.

55 Commission's costs
  • (1) The costs of the Commission in relation to a determination or application for a determination (including the costs of any expert advice) must be met by the parties to the determination in the proportions directed by the Commission in writing.

    (2) The Commission's costs in relation to a standard terms determination, or a pricing review determination in relation to a standard terms determination, may be met—

    • (a) in the manner provided under subsection (1); or

    • (b) by way of a levy under section 11; or

    • (c) by a combination of the ways referred to in paragraphs (a) and (b).

    Subsection (2) was inserted, as from 22 December 2006, by section 25 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

56 Parties' costs
  • (1) Subject to subsection (2), each party bears his or her own costs in relation to a determination or application for a determination.

    (2) The Commission may, by written direction to a party to a determination, require that person to meet some or all of the other party's costs in respect of a determination or application for a determination if, in the opinion of the Commission, the party has materially contributed to any costs or unreasonable delay.

    (3) The direction must specify the amount payable by each person.

57 Enforcing directions given under section 55 or section 56(2)
  • (1) The Commission may enforce a direction given under section 55 by filing it in the prescribed form in the Wellington Registry of the High Court.

    (2) A party to a determination in respect of which a direction has been given under section 56(2) may enforce that direction by filing it in the Wellington Registry of the High Court.

    (3) A direction that is filed in the High Court under this section is enforceable as a judgment of the High Court in its civil jurisdiction.

58 Clarification of determination
  • (1) The Commission may amend a determination for the purpose of making a clarification if—

    • (a) at any time the Commission, on its own initiative or on the application of any person, considers that a determination requires clarification; and

    • (b) [Repealed]

    • (c) No appeal is pending in respect of the determination.

    (2) The Commission must give public notice of an amendment to a determination made under subsection (1).

    Subsection (1)(b) was repealed, as from 22 December 2006, by section 26 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

59 Reconsideration of determination
  • (1) Subject to subsection (2), the Commission may at any time, on the application of a party to a determination, revoke or amend the determination or revoke the determination and make a further determination in substitution for it if the Commission considers that—

    • (a) there has been a material change of circumstances since the date on which a determination was made or last reconsidered; or

    • (b) [Repealed]

    • (c) the determination was made on the basis of information that was false or misleading in a material particular.

    (2) A determination may not be reconsidered if an appeal is pending in respect of the determination.

    (3) In reconsidering a determination, the Commission must follow the same process that was followed for the initial determination.

    (4) To avoid doubt, a determination continues to have effect and is enforceable pending its reconsideration under this section.

    (5) The Commission must give public notice of a revoked or amended determination or a revoked and substituted determination.

    Subsection (1)(b) was repealed, as from 22 December 2006, by section 27 Telecommunications Amendment Act (No 2) 2006 (2006 No 83). See sections 62 to 66 of that Act for the transitional provisions.

60 Appeals from certain determinations under Part 2
  • (1) Subject to subsection (2), a party to a determination made under this Part may appeal to the High Court against—

    • (a) a direction of the Commission under section 55 or section 56(2):

    • (b) the determination (including an amendment to a determination made under section 58 or a determination that has been reconsidered under section 59) on a question of law:

    • (c) a decision of the Commission not to clarify a determination under section 58 on a question of law:

    • (d) a decision of the Commission not to reconsider a determination under section 59 on a question of law.

    (2) No party may appeal against a determination made under this Part—

    • (a) while a clarification of the determination under section 58 is pending; or

    • (b) while a reconsideration of the determination under section 59 is pending.

    (3) If appeal or judicial review proceedings are commenced in respect of a determination, then, until the proceedings are finally disposed of, the determination continues to have effect and is enforceable as if the proceedings had not been commenced.

    (4) The decision of the High Court on appeal from a determination is final unless leave to appeal to the Court of Appeal is given by the High Court or, if leave is refused by the High Court, by the Court of Appeal.

    (5) [Repealed]

    Subsection (5) was repealed, as from 1 January 2004, by section 48(2) Supreme Court Act 2003 (2003 No 53). See sections 50 to 55 of that Act for the transitional and savings provisions.

61 Enforcing determinations of Commission
  • [Repealed]

    Section 61 was repealed, as from 22 December 2006, by section 28 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

62 Expiry of determinations
  • Every determination expires on the earlier of—

    • (a) the expiry date stated in the determination (if any); or

    • (b) the date on which the designated service or specified service to which the determination applies ceases to have that status because it has been omitted from Schedule 1 under section 66(b).

    Section 62 was substituted, as from 22 December 2006, by section 29 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

63 Application of Commerce Act 1986
  • Part 2 of the Commerce Act 1986 does not apply in respect of a determination made under this Part or any matter necessary for giving effect to a determination made under this Part.

Subpart 6Matters relating to regulation-making powers for designated services and specified services

64 Mandatory review of local loop unbundling and access to, and interconnection with, Telecom's fixed PDN
  • [Repealed]

    Sections 64 and 65 were repealed, as from 22 December 2006, by section 30 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

65 Expiry of designated services and specified services
  • [Repealed]

    Subsection (1A) was inserted, as from 31 October 2006, by section 4 Telecommunications Amendment Act 2006 (2006 No 53).

    Sections 64 and 65 were repealed, as from 22 December 2006, by section 30 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

66 Alterations to Part 2 or Part 3 of Schedule 1
  • The Governor-General may, by Order in Council made on the recommendation of the Minister, amend Part 2, or Part 3, of Schedule 1 by—

    • (a) adding a telecommunications service to the Part and setting out in relation to that service—

      • (i) a description of the service; and

      • (ii) any applicable conditions; and

      • (iii) a description of the access providers and access seekers; and

      • (iv) in the case of a service being added to subpart 1 of Part 2, or Part 3, of Schedule 1, a description of—

        • (A) the applicable access principles; and

        • (B) the limits (if any) on the applicable access principles; and

      • (v) in the case of a service being added to subpart 1 of Part 2 of Schedule 1,—

        • (A) the applicable initial pricing principle; and

        • (B) the applicable final pricing principle; and

        • (C) any requirement referred to in section 45 for the applicable final pricing principle; and

        • (D) any additional matters that must be considered regarding the application of section 18:

    • (b) omitting a telecommunications service from the Part:

    • (c) in respect of a service, amending—

      • (i) the description of the service:

      • (ii) any applicable conditions:

      • (iii) the description of access seekers:

      • (iv) the description of access providers:

      • (v) the description of the applicable access principles:

      • (vi) the description of the limits (if any) on the applicable access principles:

      • (vii) the applicable initial pricing principle and the applicable final pricing principle:

      • (viii) any requirement referred to in section 45 for the applicable final pricing principle:

      • (ix) any additional matters that must be considered regarding the application of section 18.

67 Alterations to clauses 1 to 6 of Schedule 1
  • The Governor-General may, by Order in Council made on the recommendation of the Minister, amend any of clauses 1 to 6 of Schedule 1.

68 Minister's recommendation subject to procedure in Schedule 3
  • (1) The Minister must not make a recommendation under section 66 or 67 unless the Minister accepts the Commission's recommendation that the proposed alteration be made.

    (2) The Commission's recommendation must be made in accordance with the procedure set out in—

    • (a) Part 2 of Schedule 3 for a telecommunications service that is omitted from Part 3 of Schedule 1 and is added to Part 2 of that schedule; or

    • (b) Part 1 of Schedule 3 in any other case.

    (3) This section does not prevent the Minister from making a recommendation under section 66 or 67 to amend the detail of a proposed alteration so long as the recommendation—

    • (a) implements the effect of the Commission's recommendation on the proposed alteration; and

    • (b) does not differ from that recommendation in any material way (for example, other than in matters of drafting style or minor detail).

    Section 68 was substituted, as from 22 December 2006, by section 31 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

68A Application of Schedule 3A
  • (1) Schedule 3A applies if Schedule 3 applies.

    (2) However, Schedule 3A does not limit Schedule 3.

    Section 68A was inserted, as from 22 December 2006, by section 31 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69 Regulations
  • (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes:

    • (a) providing for the application of applicable access principles under section 29(a):

    • (b) providing for the application of the applicable initial pricing principle under section 29(c):

    • (c) prescribing a method or methods for the calculation of the price payable under section 45(2), which must be consistent with the applicable final pricing principle:

    • (d) providing for the determination of the price payable under section 49(a), which must be consistent with the applicable final pricing principle:

    • (e) providing for the determination of the price payable under section 52(a), which must be consistent with the applicable final pricing principle:

    • (f) providing requirements relating to the information that must be provided to the Commission in relation to all or any of the matters referred to in paragraphs (a) to (e):

    • (g) providing for any other matters contemplated by this Part, necessary for its administration, or necessary for giving it full effect.

    (2) The Minister must not make a recommendation under subsection (1) unless the Commission has recommended the making of the regulations.

Part 2A
Operational separation of Telecom

  • Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Preliminary provisions

69A Purposes
  • The purposes of this Part are—

    • (a) to promote competition in telecommunications markets for the long-term benefit of end-users of telecommunications services in New Zealand; and

    • (b) to require transparency, non-discrimination, and equivalence of supply in relation to certain telecommunications services; and

    • (c) to facilitate efficient investment in telecommunications infrastructure and services.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69B Overview
  • (1) The main features of this Part are that it—

    • (a) provides for a robust operational separation of Telecom to achieve the purposes of this Part; and

    • (b) sets the process for the Minister and Telecom to settle a separation plan following public comments.

    (2) This section is intended only as a guide to the general scheme and effect of this Part.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69C Interpretation
  • In this Part, unless the context otherwise requires,—

    Minister's determination means a determination made under section 69F

    Ministry means the Ministry that is responsible for administering this Act

    operational separation

    • (a) includes the way in which business units are managed or structured, and the type of relationships, dealings, and transactions the units have:

    • (b) does not include a requirement that any business unit must be operated by different owners:

    • (c) may include business units being operated in different companies but only if Telecom wishes

    publish means to publish on an Internet website in an electronic form that is publicly accessible (at all reasonable times)

    relevant services means any telecommunications services, or types of telecommunications services, specified in a Minister's determination

    separation plan means the plan that is required under this Part

    separation undertaking means any instrument that is designed to promote the purposes of this Part and that is identified as a separation undertaking in the separation plan approved under this Part.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Requirements for separation plan

69D Main requirements for separation plan
  • (1) The separation plan must require a robust operational separation of Telecom, including undertakings to achieve the following in respect of relevant services:

    • (a) Telecom must establish and maintain the following business units:

      • (i) a fixed network access service business unit (which may provide a wholesale function for those services); and

      • (ii) 1 or more business units which must provide a wholesale function for all relevant services (except to the extent that a wholesale function is provided in accordance with subparagraph (i)); and

      • (iii) 1 or more business units that provide 1 or more other functions (for example, retail); and

    • (b) Telecom must operate its fixed network access service business unit on a stand alone basis, at arms length from any other Telecom business unit; and

    • (c) Telecom must operate its wholesale business unit or units at arms length from any business unit that provides retail functions; and

    • (d) Telecom must operate any business unit that provides retail functions at arms length from any of Telecom's fixed network business units (whether access service units or other fixed network units); and

    • (e) Telecom must ensure that all Telecom business units are operated in a way that does not undermine the requirements in paragraphs (b) to (d); and

    • (f) Telecom must ensure transparency and equivalence in relation to the supply by Telecom of relevant services; and

    • (g) Telecom must be responsive in meeting its wholesale customers' needs in relation to relevant services; and

    • (h) Telecom must have systems, procedures, and processes that require—

      • (i) compliance with the separation plan; and

      • (ii) monitoring of, and reporting on, compliance with the separation plan by an independent oversight group that has a majority of members that are independent of Telecom; and

      • (iii) the development of performance measures relating to compliance with the separation plan; and

      • (iv) audit, and other checks, of compliance with the separation plan.

    (2) The separation plan must specify a separation day or a method of determining the separation day.

    (3) Each separation plan given to the Minister by Telecom under any provision of this Part must be accompanied by a certificate signed by at least 2 directors of Telecom certifying that the directors are satisfied that the plan complies with this Part and any Minister's determination.

    (4) This Part does not require separation undertakings to be given in respect of services other than relevant services.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69E Meaning of equivalence
  • Section 69D(1)(f) requires equivalence of supply of wholesale telecommunications services and access to Telecom's network so that third party access seekers are treated in the same or an equivalent way to Telecom's own business operations, including in relation to pricing, procedures, operational support, supply of information, and other relevant matters.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69F Minister must determine further requirements for separation plan
  • (1) The Minister must determine further requirements with which the separation plan must comply.

    (2) These further requirements may include—

    • (a) the objectives and outcomes that the separation undertakings are required to give effect to; and

    • (b) the telecommunications services, or types of telecommunications services, to which equivalence and the other requirements in section 69D are to apply, and how they are to apply; and

    • (c) the matters that must be addressed in the separation undertakings, and the minimum requirements for those undertakings.

    (3) In specifying the relevant services under subsection (2)(b), the Minister is not required to list individual named services and may instead—

    • (a) provide a general description of the type or class of service, for example, all broadband services:

    • (b) provide a general description of the parts of the Telecom network that are used to deliver the service, for example, the fixed PSTN:

    • (c) specify that all or any services that may from time to time be listed in Schedule 1 are relevant services:

    • (d) specify that all or any services that may from time to time be subject to a registered undertaking in accordance with Schedule 3A are relevant services:

    • (e) provide a mechanism for including new services that are similar to, or replacements for, any relevant services:

    • (f) specify that certain services, or types of services, are not relevant services.

    (4) The Minister may amend the determination made under this section, or make a further determination under this section, at any time.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69G How Ministerial determination of further requirements may be made
  • (1) The Minister must make a determination under section 69F by notice in writing to Telecom.

    (2) The Minister must, by notice in the Gazette, state—

    • (a) a brief description of the nature of the determination; and

    • (b) where copies of the determination are available for inspection and purchase.

    (3) The notice in the Gazette need not contain the determination.

    (4) The Minister must make the determination available to the public by making copies of it available—

    • (a) for inspection, free of charge,—

      • (i) at the head office of the Ministry (during ordinary office hours); and

      • (ii) on an Internet website in an electronic form that is publicly accessible (at all reasonable times); and

    • (b) for purchase at a reasonable price.

    (5) A determination is deemed to be a regulation for the purpose of the Regulations (Disallowance) Act 1989 but not for the purpose of the Acts and Regulations Publication Act 1989.

    (6) The Minister must present a copy of the determination to the House of Representatives in accordance with section 4 of the Regulations (Disallowance) Act 1989 (.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Process for settling separation plan

69H Preparation of draft separation plan
  • (1) Telecom must prepare a draft separation plan, in consultation with the Minister, that complies with this Part and any Minister's determination.

    (2) Telecom must give the draft separation plan to the Minister not later than 20 working days after the Minister first makes a determination under section 69F (or a later date that the Minister may allow).

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69I Minister must invite public comments on draft separation plan
  • (1) The Minister must publish a notice, as soon as practicable after receiving the draft separation plan,—

    • (a) stating that a draft separation plan has been prepared; and

    • (b) stating that a copy of the draft is available on Telecom's Internet website and the Ministry's Internet website throughout the period of 20 working days after the publishing of the notice; and

    • (c) inviting persons to give written comments about the draft plan to the Minister by a specified date, which must be 20 working days after the publishing of the notice.

    (2) Telecom and the Ministry must publish the draft plan in accordance with the notice.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69J Amendment of separation plan after public comments
  • (1) The Minister must, as soon as practicable after the date specified in section 69I(1)(c), give Telecom a copy of all written comments that the Minister receives under that section.

    (2) Telecom must, in consultation with the Minister, prepare an amended separation plan.

    (3) Telecom must, not later than 15 working days after the date specified in section 69I(1)(c) (or a later date that the Minister may allow), give to the Minister—

    • (a) an amended separation plan; and

    • (b) a summary of how (if at all) the draft separation plan was amended as a result of the public comments.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69K Minister may approve, or decline to approve, separation plan
  • (1) The Minister must, as soon as practicable after receiving the amended separation plan under section 69J(3), by notice in writing to Telecom,—

    • (a) approve the separation plan; or

    • (b) decline to approve the separation plan.

    (2) If the Minister declines to approve the separation plan,—

    • (a) the Minister must indicate the parts of the separation plan that require amendment; and

    • (b) the Minister must direct Telecom to prepare and submit a further amended separation plan; and

    • (c) Telecom must, in consultation with the Minister, prepare a further amended separation plan and give it to the Minister not later than 15 working days after the date on which approval was declined (or a later date that the Minister may allow).

    Compare: 2001 No 51 ss 55, 56; 2003 No 40 ss 31, 32

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69L Minister may amend separation plan to give better effect to this Part
  • (1) As soon as practicable after receiving an amended separation plan under section 69K(2)(c), the Minister must—

    • (a) approve the plan; or

    • (b) make any amendments to the plan that the Minister considers would be desirable to give better effect to the purposes of this Part or any requirements under this Part, and approve the plan (as amended).

    (2) Before making amendments to a separation plan, the Minister must advise Telecom of the Minister's intention to do so and must give Telecom a reasonable opportunity to make submissions on the matter.

    (3) The Minister must give notice in writing to Telecom of the approval of the plan, accompanied by a copy of the plan as approved.

    Compare: 2001 No 51 s 57; 2003 No 40 s 33

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69M Failure to submit separation plan
  • (1) The Minister must arrange for a separation plan to be prepared, and the Minister has all the powers necessary for that purpose, if Telecom does not give to the Minister—

    • (a) a draft separation plan within the time specified in section 69H(2); or

    • (b) an amended separation plan within the time specified in section 69J(3) or 69K(2)(c).

    (2) This Part applies to a separation plan prepared under subsection (1) with necessary modifications.

    (3) The Minister and the Ministry are entitled to be reimbursed by Telecom for the costs and expenses that they incur in taking action under subsection (1).

    Compare: 2001 No 51 s 58; 2003 No 40 s 34

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Implementation of separation plan

69N Implementation of separation plan
  • On and from the separation day identified in the separation plan approved by the Minister under any provision of this Part, the separation undertakings identified in that plan take effect as, or as if they were, a deed that is—

    • (a) properly executed by, and binding on, Telecom; and

    • (b) given in favour of the Crown.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69O Telecom must publish separation plan
  • As soon as practicable after the Minister approves the separation plan, Telecom must publish the plan.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69P Employees
  • (1) This section has effect only to the extent that—

    • (a) an employee is transferred within Telecom to a new business unit under the implementation of the separation plan; and

    • (b) the separation plan applies this section to the employee (whether by reference to a class of employees or otherwise).

    (2) For the avoidance of doubt,—

    • (a) the implementation of the separation plan under this Part does not affect any employment agreement between Telecom and an employee of Telecom; and

    • (b) the employee of Telecom continues to be an employee of Telecom and, for the purposes of every enactment, law, award, determination, contract, and agreement relating to the employment of the employee, his or her employment agreement is unbroken and the period of his or her service with Telecom and every other period of service that is recognised by Telecom as his or her continuous service, continues to be recognised; and

    • (c) the terms and conditions of the employment of the employee with Telecom are (until varied) identical to the terms and conditions of his or her employment before the implementation of the separation plan and are capable of variation in the same manner; and

    • (d) the employee is not entitled to receive any payment or other benefit by reason only of the implementation of the separation plan.

    Compare: 2001 No 51 s 61

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Statutory provisions for enforcement of separation plan

69Q Enforcement and remedies under Part 4A
  • Sections 156L, 156M, and sections 156O to 156R apply to a separation undertaking as provided in Part 4A.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69R Power of Court to grant relief in respect of separation undertakings
  • (1) If, on the application of the Commission, it appears to the High Court that Telecom intends to engage, or is engaging, or has engaged, in conduct that constitutes, or would constitute, a breach of the terms of a separation undertaking, the Court may make any orders on any terms and conditions that it thinks appropriate, including, without limitation,—

    • (a) an order to—

      • (i) restrain Telecom from engaging in conduct that constitutes, or would constitute, the breach:

      • (ii) require Telecom to do a particular act or thing:

      • (iii) require Telecom to comply with the terms of the separation undertaking:

    • (b) an interim order.

    (2) In any proceeding under this section, the Commission, on the order of the Court, may obtain discovery and administer interrogatories.

    (3) The Court may at any time rescind or vary an order made under this section.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69S Interrelationship of remedies
  • (1) Nothing in this Part or Part 4A limits or affects any right, duty, liability, or remedy in respect of a separation undertaking that exists or is available apart from this Part or Part 4A.

    (2) Any right of action or other remedy available under this Part or Part 4A in respect of a separation undertaking may be taken, proceeded with, or heard in conjunction with any other action or remedy available under this Act or otherwise.

    (3) However, in determining whether to order a person to pay a penalty, compensation, or damages in respect of a separation undertaking, the Court must have regard to—

    • (a) whether that person has already been ordered to pay a penalty, compensation, or damages for the same matter; and

    • (b) if so, the amount and effect of that first order.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Variation of separation plan

69T Variation of separation plan
  • Sections 69U to 69X apply if Telecom or the Minister wish to vary the separation plan at any time, and for any reason, after the separation plan is implemented.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69U Variation by agreement
  • (1) Telecom and the Minister may agree to a variation to the separation plan, and implement the varied separation plan.

    (2) Sections 69N to 69S apply to the variation, and the amended separation undertakings that result.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69V Variation by Minister
  • If the Minister proposes a variation to the separation plan with which Telecom does not agree,—

    • (a) the Minister may amend any determination made under section 69F, or make a further determination under that section, specifying the Minister's requirement; and

    • (b) Telecom must prepare a variation to the separation plan within the time that the Minister requires; and

    • (c) sections 69H to 69S apply to the variation, and the amended separation undertakings that result.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69W Variation by Telecom
  • If Telecom proposes a variation to the separation plan with which the Minister does not agree,—

    • (a) the separation plan cannot be so varied; and

    • (b) the Minister must give notice in writing to Telecom of the reasons for the Minister's refusal to agree.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69X Commission may request variation
  • (1) The Commission may request the Minister to propose a variation to the separation plan.

    (2) The request may be made at any time and for any reason.

    (3) Sections 69U and 69V apply if the Minister agrees to propose the variation.

    Part 2A (comprising sections 69A to 69X) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Part 2B
Information disclosure requirements

  • Part 2B (comprising sections 69Y to 69ZH) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69Y Purpose
  • The purpose of this Part is to promote competition in telecommunications markets for the long-term benefit of end-users of telecommunications services in New Zealand by requiring that reliable and timely information prescribed by the Commission is made publicly available—

    • (a) by Telecom, so that a wide range of people are informed about the operation and behaviour of Telecom's network, wholesale, and retail business activities and services; and

    • (b) by access providers, including Telecom, so that a wide range of people are informed about the operation and behaviour of prescribed businesses that provide prescribed services, in order to monitor and facilitate compliance with prescribed applicable access principles.

    Compare: 1986 No 5 s 57T(1)

    Part 2B (comprising sections 69Y to 69ZH) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69Z Parameters of Part
  • The Commission's requirements under this Part must be reasonable, having regard to the purpose of this Part, the confidentiality of the information in question, and the time required to prepare the information.

    Part 2B (comprising sections 69Y to 69ZH) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69ZA Interpretation
  • In this Part, unless the context otherwise requires,—

    disclose means to publish or make publicly available or otherwise supply, as may be required by the Commission

    information and disclosed information includes any statements, certificates, or other information required to be disclosed under this Act

    prescribed means prescribed by the Commission.

    Compare: 1986 No 5 s 57T(6)

    Part 2B (comprising sections 69Y to 69ZH) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69ZB Accounting separation of Telecom
  • (1) The Commission must require Telecom to prepare and disclose information about the operation and behaviour of all or any of its network, wholesale, or retail business activities as if those activities were operated as independent or unrelated companies.

    (2) The Commission may require Telecom to prepare and disclose separate information about all or part of separate prescribed business activities or separate prescribed services, within the network, wholesale, or retail categories.

    (3) Any requirements under this section must be finalised only after a separation plan has been approved under Part 2A, and must be consistent with that separation plan.

    (4) The Commission may require Telecom to prepare and disclose information consisting of, or about, the following things, as part of the information required under this section:

    • (a) financial statements:

    • (b) asset valuations and valuation reports:

    • (c) prices, terms, and conditions:

    • (d) costs and costs allocation methodologies:

    • (e) contracts:

    • (f) transactions with related parties (as if the test for related parties were the same as the test in section 79):

    • (g) financial and non-financial performance measures:

    • (h) plans and forecasts:

    • (i) transfer payments (whether actual or notional) amongst prescribed business activities:

    • (j) network capacity information:

    • (k) policies and methodologies in these or other areas.

    (5) The Commission may, as part of the information required under this section,—

    • (a) define the prescribed business activities and prescribed services in respect of which Telecom must prepare and disclose information:

    • (b) require Telecom to adopt, in the preparation or compilation of that information, any methodology that is required by the Commission (including the allocation methodology that must be used for preparing the financial statements and allocating the costs, revenues, assets, and liabilities amongst the prescribed business activities and prescribed services):

    • (c) require Telecom to disclose the manner in which methodologies have been applied:

    • (d) prescribe the information that must be included in the financial statements to be prepared and disclosed.

    (6) Before making any requirements under this section, the Commission must hold conferences or consult with persons that the Commission considers have a material interest.

    (7) Telecom must prepare and disclose the information required under this section in accordance with the Commission's requirements.

    (8) Subsections (2), (4), and (5) do not limit subsection (1).

    Compare: 1986 No 5 s 57T(2), (3)

    Part 2B (comprising sections 69Y to 69ZH) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69ZC Information disclosure by all access providers
  • (1) This section applies—

    • (a) to any access provider in relation to any part of its business that provides prescribed designated or specified services; and

    • (b) for the purpose of enabling monitoring of, and facilitating compliance with, prescribed applicable access principles—

      • (i) that are incorporated in any determination, approved code, or registered undertaking; and

      • (ii) with which the access provider is required to comply.

    (2) The Commission—

    • (a) may require the access provider to prepare and disclose information about the operation and behaviour of that part of its business; and

    • (b) may require the access provider to adopt, in the preparation or compilation of that information, any methodology that is required by the Commission.

    (3) The Commission may require the access provider to prepare and disclose information consisting of, or about, the following things, as part of the information required under this section,—

    • (a) contracts:

    • (b) prices, terms, and conditions of supply of prescribed services:

    • (c) transactions with related parties (as if the test for related parties were the same as the test in section 79):

    • (d) performance measures and statistics (for example, response times, technical performance, and service quality details):

    • (e) plans and forecasts:

    • (f) network capacity information:

    • (g) policies and methodologies in these or other areas.

    (4) Access providers must prepare and disclose any information required under this section in accordance with the Commission's requirements.

    (5) Subsection (3) does not limit subsection (2).

    Compare: 1986 No 5 s 57T(2), (3)

    Part 2B (comprising sections 69Y to 69ZH) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69ZD Miscellaneous provisions relating to Commission's information disclosure requirements
  • (1) The Commission may, in making requirements under section 69ZB or 69ZC

    • (a) prescribe the form and manner in which information must be disclosed:

    • (b) specify a time or date, or times or dates, as at which information must be disclosed:

    • (c) require the disclosure of assumptions made in the preparation of the information:

    • (d) require the audit of disclosed information:

    • (e) require disclosed information, or information from which disclosed information is derived (in whole or in part), to be certified, in the prescribed form and manner by persons belonging to any specified class of persons:

    • (f) set rules about when and for how long information must be disclosed:

    • (g) require the retention of data on which disclosed information is based and associated documentation:

    • (h) exempt or provide for exemptions (including provide for the revocation of exemptions), on any terms and conditions, of any person or class of persons from all or any of the requirements:

    • (i) provide for transitional provisions:

    • (j) make requirements from time to time (for example, more than once a year):

    • (k) make requirements in respect of all or part of the relevant business.

    (2) Subsection (1)(j) does not limit section 16 of the Interpretation Act 1999.

    Compare: 1986 No 5 s 57T(8)

    Part 2B (comprising sections 69Y to 69ZH) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69ZE Publication of Commission's information disclosure requirements
  • The Commission must give public notice of requirements made under this Part.

    Compare: 1986 No 5 s 57T(4)

    Part 2B (comprising sections 69Y to 69ZH) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69ZF Information to be supplied to Commission
  • (1) Every person who is required under this Part to disclose information must supply to the Commission—

    • (a) a copy of all information disclosed under this Part, which must be supplied within 5 working days after the information is first disclosed under this Part; and

    • (b) any further statements, reports, agreements, particulars, and other information requested in writing by the Commission for the purpose of monitoring the person's compliance with the requirements made under this Part.

    (2) Every person to whom a request is made under subsection (1)(b) must comply with that request within the period specified by the Commission.

    (3) The Commission may require all or any statements, reports, agreements, particulars, and other information supplied under subsection (1) to be either or both—

    • (a) audited:

    • (b) verified by statutory declaration by the persons and in the form required by the Commission.

    Compare: 1986 No 5 s 57U

    Part 2B (comprising sections 69Y to 69ZH) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69ZG Commission to publish summaries
  • The Commission must, as soon as practicable after the Commission is supplied with information under section 69ZF, publish a summary and analysis of the disclosed information for the purpose of promoting greater understanding of—

    • (a) the operation and behaviour of the relevant prescribed businesses of Telecom and access providers; and

    • (b) the changes in operation and behaviour over time.

    Compare: 1986 No 5 s 57V

    Part 2B (comprising sections 69Y to 69ZH) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

69ZH Reasonable charge may be imposed for providing copies of statements
  • (1) Any person who is required under this Part to provide copies of information, on request, to the public may charge for providing those copies.

    (2) A charge must be no more than is reasonably required to recover the costs of providing those copies.

    Compare: 1986 No 5 s 57W

    Part 2B (comprising sections 69Y to 69ZH) was inserted, as from 22 December 2006, by section 32 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Part 3
Telecommunications service obligations

Subpart 1TSO instruments

70 Declaration of TSO instruments
  • (1) The purpose of this section is to facilitate the supply of certain telecommunications services to groups of end-users within New Zealand to whom those telecommunications services may not otherwise be supplied on a commercial basis or at a price that is considered by the Minister to be affordable to those groups of end-users.

    (2) Subject to subsection (3), the Governor-General may, by Order in Council made on the recommendation of the Minister, declare an instrument that is identified in the Order in Council and that meets the requirements set out in subsection (4) to be a TSO instrument.

    (3) The Minister must not make a recommendation under subsection (2) unless—

    • (a) the service provider to whom the instrument applies agrees to the instrument being declared a TSO instrument; and

    • (b) the Minister has first—

      • (i) consulted liable persons and any persons and organisations that the Minister considers appropriate having regard to the subject matter of the proposed TSO instrument; and

      • (ii) assessed whether or not contestability could reasonably be achieved in relation to each of the obligations to which the instrument applies.

    (4) An instrument that is to be declared a TSO instrument must—

    • (a) record a contract or arrangement or an understanding between the Crown and a service provider for the supply of a particular telecommunications service or range of telecommunications services; and

    • (b) identify the group of end-users to whom the service must be supplied; and

    • (c) define the geographical area within which the service must be supplied; and

    • (d) specify the retail price at, or below which, the service must be supplied; and

    • (e) specify the criteria that must be met for the standard of the service to be supplied.

    (5) [Repealed]

    Subsection (5) was repealed, as from 22 December 2006, by section 33 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

71 Deemed TSO instrument
  • (1) Despite anything to the contrary in section 70, any other enactment, or rule of law, an instrument of the kind referred to in subsection (2) is deemed to be a TSO instrument (deemed TSO instrument) for the purposes of this Part (as if that instrument had been declared to be a TSO instrument under section 70).

    (2) Subsection (1) applies to—

    • (a) the original KSO:

    • (b) any other instrument (new KSO) that—

      • (i) includes or records provisions that are stated in that instrument as operating in place of, and in addition to, the KSO; and

      • (ii) is agreed, or consented to, before the commencement of this Act (even if the new KSO has effect after that date).

71A TSO instrument or deemed TSO instrument may specify total amount payable by all liable persons
  • A TSO instrument or a deemed TSO instrument may specify the total amount payable by all liable persons and the TSO provider under the instrument for each financial year of the TSO provider (the specified amount)

    Section 71A was inserted, as from 22 December 2006, by section 34 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

72 New KSO does not alter or revoke constitution of Telecom
  • To avoid doubt, the new KSO does not alter or revoke the constitution of Telecom.

73 When KSO part of original KSO ceases to have effect
  • (1) If there is a new KSO that is a deemed TSO instrument and the original KSO is still a deemed TSO instrument, then, subject to the provisions of the new KSO, the KSO ceases to have effect during the period that the new KSO is a deemed TSO instrument.

    (2) If the new KSO ceases to be a deemed TSO instrument and the original KSO has not ceased to be a deemed TSO instrument under section 76, the original KSO applies instead of the new KSO.

74 Compliance with TSO instrument
  • (1) Subject to subsection (2), a TSO provider must comply with the terms of a TSO instrument.

    (2) The statutory duty in subsection (1) does not—

    • (a) apply in respect of a TSO instrument that is the constitution of a company in which the Crown is a shareholder; or

    • (b) limit or affect any right, duty, liability, or remedy in respect of a TSO instrument that exists or is available apart from this Act.

    Subsection (1) was amended, as from 22 December 2006, by section 35 Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the expression TSO provider for the expression TSP.

75 Variation of TSO instrument or deemed TSO instrument
  • A variation of—

    • (a) a TSO instrument must be treated as part of the TSO instrument as long as the TSO instrument continues to meet the requirements set out in section 70(4):

    • (b) a deemed TSO instrument must be treated as part of the deemed TSO instrument.

76 When instrument ceases to be TSO instrument or deemed TSO instrument
  • (1) An instrument ceases to be a TSO instrument or deemed TSO instrument (as the case may be),—

    • (a) in the case of a TSO instrument to which section 70 applies, when the Governor-General, by Order in Council made on the recommendation of the Minister, revokes the declaration of that TSO instrument; or

    • (b) in the case of a deemed TSO instrument, on a date to be appointed by the Governor-General by Order in Council made on the recommendation of the Minister; or

    • (c) in the case of a TSO instrument or a deemed TSO instrument, when the TSO instrument or the deemed TSO instrument, as the case may be, has been terminated under, and in accordance with, the instrument concerned.

    (2) The Minister must not make a recommendation under subsection (1)(a) or (b) unless,—

    • (a) in the case of a TSO instrument, the service provider to whom that instrument applies agrees to the revocation of the declaration made under section 70; or

    • (b) in the case of a deemed TSO instrument, the service provider to whom that instrument applies agrees to that instrument ceasing to have effect as a deemed TSO instrument.

77 Notification of TSO instrument or deemed TSO instrument
  • (1) The Minister must notify the Commission of—

    • (a) the declaration of every TSO instrument; and

    • (b) every deemed TSO instrument.

    (2) The Commission must give public notice of every TSO instrument and deemed TSO instrument.

78 Application of Commerce Act 1986
  • Part 2 of the Commerce Act 1986 does not apply in respect of a TSO instrument or a contract, arrangement, or understanding to which the TSO instrument relates or any matter necessary for giving effect to the TSO instrument or the contract, arrangement, or understanding.

79 When 2 or more bodies corporate must be treated as 1 person
  • (1) For the purposes of this Part, any 2 or more bodies corporate must be treated as 1 person if—

    • (a) 1 of them is a body corporate of which the others are subsidiaries; or

    • (b) all of them are subsidiaries of the same body corporate; or

    • (c) all of them are associates of each other; or

    • (d) 1 of them owns or controls shares that in the aggregate carry the right to exercise or control the exercise of 20% or more of the voting power at meetings of the others; or

    • (e) a third person owns or controls shares in each of them that carry the right to exercise or control the exercise of 20% or more of the voting power at meetings of each of them.

    (2) For the purposes of subsection (1)(c), a body corporate is an associate of another if that body corporate is able, whether directly or indirectly, to exert a substantial degree of influence over the activities of the other.

    (3) A body corporate is not able to exert a substantial degree of influence over another body corporate for the purposes of subsection (2) just because—

    • (a) those bodies corporate are in competition in the same market; or

    • (b) 1 of them supplies goods or services to the other.

    Section 79 was substituted, as from 22 December 2006, by section 36 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Subpart 2Annual procedure for determining amounts payable by liable persons

Assessment of compliance

80 Assessment of compliance with TSO instrument
  • Not later than 60 working days after the end of each financial year of a TSO provider under a TSO instrument, the Commission must—

    • (a) assess the TSO provider's compliance with the TSO instrument during that financial year in accordance with any process set out in the TSO instrument; and

    • (b) notify the TSO provider and the Minister in writing of any non-compliance by the TSO provider with the TSO instrument.

    Section 80 was amended, as from 22 December 2006, by section 37(1) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the expression TSO provider for the expression TSP wherever it appears.

    Paragraph (a) was amended, as from 22 December 2006, by section 37(2) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the expression TSO provider's for the expression TSP's.

Requirement to produce certain information

  • This heading was inserted, as from 22 December 2006, by section 38 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

81 Liable persons and TSO provider must produce certain information to Commission
  • Not later than 60 working days after the end of each financial year of a TSO provider under a TSO instrument, every liable person in relation to the TSO instrument and (if the TSO instrument does not contain a specified amount) the TSO provider must provide to the Commission—

    • (a) any prescribed information or, if there is no prescribed information, information specified by the Commission, for the purpose of enabling the Commission to prepare a draft determination under section 88(1)(a) and (b) and to make its determination under section 91(1)(a) and (b); and

    • (b) a report prepared by a qualified auditor that includes a statement of whether or not the information complies with—

      • (i) any prescribed requirements relating to that information; or

      • (ii) if there are no prescribed requirements, any requirements of the Commission.

    The heading to section 81 was amended, as from 22 December 2006, by section 39(1) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the expression TSO provider for the expression TSP.

    Section 81 was amended, as from 22 December 2006, by section 39(2)(a) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the words section 88(1)(a) and (b) for the words section 88(a)(ii) and (b)(i).

    Section 81 was amended, as from 22 December 2006, by section 39(2)(b) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the words section 91(1)(a) and (b) for the words section 92(a)(ii) and (b)(i).

    Section 81 was amended, as from 22 December 2006, by section 39(2)(c) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the expression TSO provider for the expression TSP in both places it appears.

82 Offences
  • [Repealed]

    Section 82 was repealed, as from 22 December 2006, by section 40 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Net cost

83 Calculations of net cost and auditor's report must be given to Commission
  • Not later than 60 working days after the end of each financial year of a TSO provider under a TSO instrument that does not contain a specified amount, the TSO provider must provide to the Commission—

    • (a) calculations of the net cost of complying with the TSO instrument during the financial year; and

    • (b) a report prepared by a qualified auditor (the auditor's report) that includes a statement of whether or not the calculations comply with—

      • (i) any prescribed requirements relating to those calculations; or

      • (ii) if there are no prescribed requirements, any requirements of the Commission.

    Section 83 was amended, as from 22 December 2006, by section 41 Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the expression TSO provider for the expression TSP in both places it appears.

84 Considerations for determining net cost
  • (1) Subject to subsections (2) and (3), in calculating the net cost under section 83, preparing a draft determination of the net cost under section 93A, and determining the net cost under section 93E, all of the following matters must be taken into account:

    • (a) the range of direct and indirect revenues and associated benefits derived from providing telecommunications services to commercially non-viable customers, less the costs of providing those telecommunications services to those customers:

    • (b) the provision of a reasonable return on the incremental capital employed in providing the services to those customers.

    (2) In preparing a draft determination of the net cost under section 93A and determining the net cost under section 93E, the Commission—

    • (a) may choose to not include profits from any new telecommunications services that involve significant capital investment and that offer capabilities not available from established telecommunications services; and

    • (b) must not include any losses from telecommunications services other than services that the TSO instrument requires the TSO provider to provide; and

    • (c) must consider the purpose set out in section 18.

    (3) In calculating the net cost under section 83, the TSO provider must comply with any requirements of the Commission relating to the application of subsection (2)(a) to (c).

    (4) In this section,—

    established telecommunications services means telecommunications services that are not new telecommunications services

    new telecommunications services means telecommunications services that were first provided in New Zealand within 5 years before the commencement of the financial year to which the calculation of the net cost relates.

    Subsection (1) was amended, as from 22 December 2006, by section 42(1) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the words section 93A, and determining the net cost under section 93E for the words section 88, and determining the net cost under section 92.

    Subsection (2) was amended, as from 22 December 2006, by section 42(2) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the words section 93A and determining the net cost under section 93E for the words section 88 and determining the net cost under section 92.

    Subsections (2) and (3) were amended, as from 22 December 2006, by section 42(3) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the expression TSO provider for the expression TSP wherever it appears.

Amount of revenue received by liable persons in relation to TSO instrument

85 Considerations for determining which revenue basis to use
  • (1) In preparing a draft determination referred to in section 88 and a final determination referred to in section 91, the Commission may use either—

    • (a) a revenue basis where there are no weights attached to any revenue amount referred to in section 88(1)(a) or (b) or section 91(1)(a) or (b); or

    • (b) a weighted revenue basis where each revenue amount referred to in section 88(1)(a) or (b) or section 91(1)(a) or (b) is multiplied by a weight.

    (2) In deciding which revenue basis to use under subsection (1) for the purposes of calculating, under section 93, the amount payable by a liable person in relation to a TSO instrument, the Commission must—

    • (a) consider the purpose set out in section 18; and

    • (b) choose the method that the Commission considers best gives, or is likely to best give, effect to that purpose.

    (3) For the purposes of subsection (1), a weighted revenue basis involves both of the following steps:

    • (a) identifying categories of telecommunications services that are likely to have the same market elasticity of demand:

    • (b) estimating the market elasticity of demand for each category of telecommunications services by using a recognised econometric method or other recognised estimation method.

    (4) The Commission must, when applying both of the steps set out in subsection (3)(a) and (b) for the purposes of calculating, under section 93, the amount payable by a liable person in relation to a TSO instrument, consider the ability of—

    • (a) the liable person to pass on to end-users of telecommunications services the amount payable by the liable person; and

    • (b) the TSO provider to pass on to end-users of telecommunications services the net cost of complying with the TSO instrument less any amount payable by liable persons.

    (5) For the purposes of subsection (4), the Commission must not consider any reduction for non-compliance with the TSO instrument.

    Subsection (1) was amended, as from 22 December 2006, by section 43(1)(a) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the words a draft determination referred to in section 88 and a final determination referred to in section 91 for the words a draft determination referred to in section 88 and a final determination referred to in section 92.

    Subsection (1)(a) and (b) was amended, as from 22 December 2006, by section 43(1)(b) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the words section 88(1)(a) or (b) or section 91(1)(a) or (b) for the words section 88(a)(ii) or (b)(i) or section 92(a)(ii) or (b)(i).

    Subsection (4)(b) was amended, as from 22 December 2006, by section 43(2) by substituting the expression TSO provider for the expression TSP.

General provision relating to TSO cost allocation determination and TSO cost calculation determination

  • This heading was substituted for the heading Draft determination, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

86 Commission may determine priority between preparation of TSO cost allocation determination and TSO cost calculation determination
  • (1) The Commission may determine the priority between the preparation of the TSO cost allocation determination and the TSO cost calculation determination and, accordingly, may comply with sections 87 to 91 and sections 92 to 93E in the sequence, as between those two sets of sections, it thinks fit.

    (2) However, the Commission must prepare a final TSO cost allocation determination before preparing a final TSO cost calculation determination for a financial year.

    Sections 86 to 93 were substituted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

TSO cost allocation determination

  • This heading was inserted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

87 Commission to prepare draft TSO cost allocation determination
  • The Commission must make reasonable efforts to do the following things not later than 80 working days after the end of each financial year of a TSO provider under a TSO instrument:

    • (a) prepare a draft TSO cost allocation determination:

    • (b) give public notice of that draft determination:

    • (c) include in the public notice the closing date for submissions, which must not be later than 20 working days after the date of giving public notice.

    Sections 86 to 93 were substituted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

88 Matters to be included in draft TSO cost allocation determination
  • (1) A draft TSO cost allocation determination must include—

    • (a) the amount of each TSO provider's TSO-qualified revenue; and

    • (b) the amount of each liable person's TSO-qualified revenue; and

    • (c) a statement that identifies which revenue basis has been used under section 85(1) in respect of each amount of revenue to which the draft determination applies; and

    • (d) if a weighted revenue basis has been used for any amount of revenue, the particulars of the weighting attached to that amount of revenue; and

    • (e) the revenue amounts that will be used for the purposes of calculating, under section 93F, the amount payable by each liable person in relation to each TSO instrument; and

    • (f) the methodology applied by the Commission in making the determination; and

    • (g) the reasons for the determination.

    (2) To avoid doubt, the Commission may determine what revenue basis to use for the purposes of subsection (1)(c) (for example, a net-revenue basis).

    Sections 86 to 93 were substituted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

89 Conferences on draft TSO cost allocation determination
  • The Commission may—

    • (a) hold conferences in relation to a draft ISO cost allocation determination; and

    • (b) invite to those conferences any person who has a material interest in a matter to be determined.

    Sections 86 to 93 were substituted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

90 Commission to prepare final TSO cost allocation determination
  • The Commission must make reasonable efforts to do the following things not later than 20 working days after the closing date for submissions under section 87(c):

    • (a) prepare a final TSO cost allocation determination:

    • (b) give public notice of that final determination:

    • (c) give a copy of that final determination to all liable persons and TSO providers in relation to each TSO instrument.

    Sections 86 to 93 were substituted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

91 Matters to be included in final TSO cost allocation determination
  • (1) A final TSO cost allocation determination under section 90 must include—

    • (a) the amount of each TSO provider's TSO-qualified revenue; and

    • (b) the amount of each liable person's TSO-qualified revenue; and

    • (c) a statement that identifies which revenue basis has been used under section 85(1) in respect of each amount of revenue to which the final determination applies; and

    • (d) if a weighted revenue basis has been used for any amount of revenue, the particulars of the weighting attached to that amount of revenue; and

    • (e) the revenue amounts that have been used for the purposes of calculating, under section 93F, the amount payable by each liable person in relation to each TSO instrument; and

    • (f) the percentage of the net cost under section 93E(a) or, as the case may be, the specified amount to be paid by each liable person in relation to the TSO instrument to the TSO provider in respect of the financial year calculated in accordance with section 93F.

    (2) To avoid doubt, the Commission may determine what revenue basis to use for the purposes of subsection (1)(c) (for example, a net-revenue basis).

    Sections 86 to 93 were substituted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

TSO cost calculation determination

  • This heading was inserted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

92 Commission to prepare draft TSO cost calculation determination
  • The Commission must make reasonable efforts to do the following things not later than 120 working days after the end of each financial year of a TSO provider under a TSO instrument:

    • (a) prepare a draft TSO cost calculation determination:

    • (b) give public notice of that draft determination:

    • (c) include in the public notice the closing date for submissions, which must not be later than 20 working days after the date of giving public notice.

    Sections 86 to 93 were substituted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

93 Requirements for draft TSO cost calculation determination
  • In preparing a draft TSO cost calculation determination of the matters referred to in section 93A(c), the Commission must consider the steps (if any) taken by the TSO provider between the time of any notification under section 80(b) and 15 working days before public notice is given under section 92(b) to remedy any non-compliance by the TSO provider with the TSO instrument.

    Sections 86 to 93 were substituted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

93A Matters to be included in draft TSO cost calculation determination
  • A draft TSO cost calculation determination must include,—

    • (a) if the TSO instrument does not contain a specified amount, the net cost under section 93E(a) and all material information that—

      • (i) relates to the calculation of the net cost; and

      • (ii) would not, in the opinion of the Commission, be likely to unreasonably prejudice the commercial position of the TSO provider; and

    • (b) if the TSO instrument contains a specified amount, the dollar amount of the specified amount and all material information that—

      • (i) relates to the calculation of that amount; and

      • (ii) would not, in the opinion of the Commission, be likely to unreasonably prejudice the commercial position of the TSO provider; and

    • (c) in all cases, the amount (if any) by which the total amount that the TSO provider would receive from all liable persons in relation to the TSO instrument must be reduced because the TSO provider has not complied with the TSO instrument; and

    • (d) the methodology applied by the Commission in making the determination; and

    • (e) the reasons for the determination.

    Sections 93A to 93F were inserted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

93B Conferences on draft TSO cost calculation determination
  • The Commission may—

    • (a) hold conferences in relation to a draft TSO cost calculation determination; and

    • (b) invite to those conferences any person who has a material interest in a matter to be determined.

    Sections 93A to 93F were inserted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

93C Commission to prepare final TSO cost calculation determination
  • The Commission must make reasonable efforts to do the following things not later than 40 working days after the closing date for submissions under section 92(c):

    • (a) prepare a final TSO cost calculation determination:

    • (b) give public notice of that final determination:

    • (c) give a copy of that final determination to all liable persons and the TSO providers in relation to the TSO instrument.

    Sections 93A to 93F were inserted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

93D Requirements for final TSO cost calculation determination
  • In making a final TSO cost calculation determination of the matters referred to in section 93E(c), the Commission must consider the steps (if any) taken by the TSO provider between 15 working days before the date on which public notice is given under section 92(b) and 15 working days before the date on which public notice is given under section 93C(b) to remedy any non-compliance by the TSO provider with the TSO instrument.

    Sections 93A to 93F were inserted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

93E Matters to be included in final TSO cost calculation determination
  • A final cost calculation determination made under section 93C must include,—

    • (a) if the TSO instrument does not contain a specified amount, the net cost to the TSO provider of complying with the TSO instrument during the TSO provider's financial year and all material information that—

      • (i) relates to the calculation of the net cost; and

      • (ii) would not, in the opinion of the Commission, be likely to unreasonably prejudice the commercial position of the TSO provider; and

    • (b) if the TSO instrument contains a specified amount, the dollar amount of the specified amount and all material information that—

      • (i) relates to the calculation of that amount; and

      • (ii) would not, in the opinion of the Commission, be likely to unreasonably prejudice the commercial position of the TSO provider; and

    • (c) in all cases, the amount (if any) by which the total amount that the TSO provider would receive from all liable persons in relation to the TSO instrument must be reduced because the TSO provider has not complied with the TSO instrument; and

    • (d) an amount payable by each liable person in relation to the TSO instrument to the TSO provider in respect of the financial year calculated in accordance with section 93F; and

    • (e) an amount payable by each liable person in relation to the TSO instrument to the TSO provider for the loss of use of the amount referred to in paragraph (c), calculated at the 90-day bank bill rate (as at the date of the final determination) for the period commencing from the end of the TSO provider's financial year and ending with the date of the final determination.

    Sections 93A to 93F were inserted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Calculation of amount payable by liable person

  • This heading was inserted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

93F Calculation of amount payable by liable person
  • The amount payable by a liable person in relation to a TSO instrument that must be contained in the Commission's final TSO cost calculation determination made under section 93C is,—

    • (a) for a TSO instrument that contains a specified amount, the amount calculated using the following formula:

      .
    • (b) for a TSO instrument that does not contain a specified amount, the amount calculated using the following formula:

      .

      where—

      • a is the amount of the liable person's TSO-qualified revenue that is referred to in section 91(1)(b) (excluding any part of that revenue that was received for performing any obligation under a TSO instrument that contains a specified amount)

      • b is the amount of the TSO provider's TSO-qualified revenue referred to in section 91(1)(a) (excluding any part of that revenue that was received for performing any obligation under a TSO instrument that contains a specified amount)

      • c is the sum of the amounts of each liable person's TSO-qualified revenue referred to in section 91(1)(b)

      • d is the specified amount

      • e is the amount of the reduction (if any) referred to in section 93E(c)

      • f is the net cost referred to in section 93E(a).

    Sections 93A to 93F were inserted, as from 22 December 2006, by section 44 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

94 Payment by liable persons to TSO provider
  • (1) A liable person in relation to a TSO instrument must pay to the TSO provider the amounts set out in the determination under section 92(f) and (g) not later than 20 working days after the date of the determination.

    (2) Any amount that is not paid, under subsection (1), to the TSO provider by a liable person in relation to a TSO instrument before the expiration of the 20-working day period is recoverable in any court of competent jurisdiction as a debt due to the TSO provider.

    (3) If a liable person has not paid the whole amount referred to in subsection (1) before the expiration of the 20-working day period, the liable person must pay to the TSO provider interest on the unpaid amount at the 90-day bank bill rate (as at 21 working days after the date of the determination), plus 5% for the period commencing on that working day to the date of payment of the whole amount.

    (4) Subsection (3) does not authorise the giving of interest upon interest.

    The heading to section 94 was amended, as from 22 December 2006, by section 45(1) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the expression TSO provider for the expression TSP.

    Section 94 was amended, as from 22 December 2006, by section 45(2) Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the expression TSO provider for the expression TSP wherever it appears.

Calculation of amount payable by TSO provider

  • This heading was inserted, as from 22 December 2006, by section 46 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

94A ISO provider must meet residual amount from calculation of TSO charge
  • The TSO provider must meet any amount that remains after subtracting all of the amounts payable by liable persons under section 93F from the net cost to the TSO provider of complying with the TSO instrument during the TSO provider's financial year or, as the case may be, the specified amount.

    Section 94A was inserted, as from 22 December 2006, by section 46 Telecommunications Amendment Act (No 2) 2006 (2006 No 83).

Subpart 3Remedies and miscellaneous

Remedies

95 Application of sections 96 to 98 to TSO instruments that are company constitutions
  • (1) Nothing in sections 96 to 98 applies in respect of a TSO instrument that is the constitution of a company in which the Crown is a shareholder.

    (2) Nothing in subsection (1) or sections 96 to 98 limits or affects any right, duty, liability, or remedy in respect of a TSO instrument that exists or is available apart from this Act.

96 Power of Court to grant relief in respect of TSO instrument
  • (1) If, on the application of the Crown, it appears to the High Court that a TSO provider intends to engage, or is engaging, or has engaged, in conduct that constitutes, or would constitute, a breach of the terms of a TSO instrument, the Court may make any orders on any terms and conditions that it thinks appropriate, including, without limitation,—

    • (a) an order to—

      • (i) restrain the TSO provider from engaging in conduct that constitutes, or would constitute, the breach:

      • (ii) require the TSO provider to do a particular act or thing:

      • (iii) require the TSO provider to comply with the terms of the TSO instrument:

    • (b) an interim order.

    (2) In any proceeding under this section, the Crown, on the order of the Court, may obtain discovery and administer interrogatories.

    (3) The Court may at any time rescind or vary an order made under this section.

    Subclause (1) was amended, as from 22 December 2006, by section 47 Telecommunications Amendment Act (No 2) 2006 (2006 No 83) by substituting the expression TSO provider for the expression TSP wherever it appears.

97 Court must take public interest into account