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Telecommunications Act 2001

Fibre fixed line access services - Price-quality regulation

197: Smoothing revenues and prices

You could also call this:

"The law helps keep internet prices fair and stable over time."

Illustration for Telecommunications Act 2001

When the Commission sets the highest prices or revenues for fibre fixed line access services, as mentioned in section 194(2)(b), this section applies to you. The Commission calculates the highest price or revenue in a way that is fair over two or more regulatory periods. They do this to help prevent financial hardship for the service provider or big price changes for users, if they think it is necessary.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS132004.

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196: Wash-up mechanism for maximum revenues specified in initial price-quality paths, or

"Making sure fibre service prices are fair by adjusting them if companies make too much money."

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198: Anchor services, or

"Important internet services that must be provided in a fair and affordable way"

Part 6Fibre fixed line access services
Price-quality regulation

197Smoothing revenues and prices

  1. This section applies when the Commission specifies maximum prices or maximum revenues for the purpose of section 194(2)(b).

  2. The Commission must calculate the maximum price or revenue in a manner that is equivalent in present value terms (as calculated in the manner that the Commission thinks fit) over 2 or more regulatory periods (for example, by altering depreciation) if, in the Commission’s opinion, it is necessary or desirable to do so to minimise any undue financial hardship to a regulated fibre service provider or to minimise price shocks to end-users.

Notes
  • Section 197: inserted, on , by section 24 of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).