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Telecommunications Act 2001

Fibre fixed line access services - Price-quality regulation

194: Section 170 determination to set out price-quality path requirements

You could also call this:

"Rules for fibre internet prices and quality"

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When it comes to fibre fixed line access services, a section 170 determination must say what price-quality paths apply to a regulated fibre service provider. You need to know that a price-quality path sets out things like the maximum price a provider can charge and the quality standards they must meet. It also says when these rules take effect and when the provider must show they are complying with them, as stated in section 193(2). A price-quality path can include incentives for a provider to maintain or improve their quality of supply. These incentives can be penalties, like reducing the provider's maximum prices, or rewards, like increasing their maximum prices. You might see compensation schemes that require the provider to pay if they fail to meet standards, or reporting requirements if they fail to meet quality standards. Quality standards can be set in different ways, like targets or formulas, and a price-quality path does not apply until the date specified in the section 170 determination. The Commission can prescribe quality standards in a way they consider appropriate, and this can include things like minimum standards of performance. You can find more information about this in the section 170 determination.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS132000.

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"What happens when a fibre service provider has to follow price and quality rules"

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Part 6Fibre fixed line access services
Price-quality regulation

194Section 170 determination to set out price-quality path requirements

  1. A section 170 determination relating to fibre fixed line access services that are subject to price-quality regulation must specify the price-quality paths that apply to a regulated fibre service provider.

  2. A price-quality path must specify the following:

  3. the regulatory period to which it applies:
    1. in relation to prices, 1 or both of the following:
      1. the maximum price or prices that may be charged by a regulated fibre service provider:
        1. the maximum revenues that may be recovered by a regulated fibre service provider:
        2. the quality standards that must be met by a regulated fibre service provider:
          1. the date or dates on which the price-quality path (or any part of it) takes effect:
            1. the date or dates by which compliance must be demonstrated in accordance with section 193(2).

              1. A price-quality path may include incentives for a regulated fibre service provider to maintain or improve its quality of supply, and those incentives may include (without limitation) any of the following:

              2. penalties by way of a reduction in the provider’s maximum prices or revenues based on whether, or by what amount, the provider fails to meet the required quality standards:
                1. rewards by way of an increase in the provider’s maximum prices or revenues based on whether, or by what amount, the provider meets or exceeds the required quality standards:
                  1. compensation schemes that set minimum standards of performance and require the provider to pay prescribed amounts of compensation if it fails to meet those standards:
                    1. reporting requirements, including special reporting requirements in asset management plans, if the provider fails to meet the quality standards.

                      1. Quality standards may, subject to any relevant input methodologies, be prescribed in any way the Commission considers appropriate (such as targets, bands, or formulas).

                      2. A price-quality path does not apply to a regulated fibre service provider until the date specified in the relevant section 170 determination.

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                      Notes
                      • Section 194: inserted, on , by section 24 of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).