Better transparency of the cost and operation of Telecom’s services and business units, promises to promote better competition in the telecommunications industry, the Commerce Commission says.
The Commission yesterday issued regulatory requirements for the accounting separation of Telecom, that will see Telecom publish financial and other information about its retail, wholesale and network business activities.
The Commission says having this information publicly available will keep a wide range of people informed about the operation and behaviour of Telecom’s business activities.
This will also help identify any discriminatory behaviour between Telecom's wholesale customers and its own business units, says Commerce Commission Chair Paula Rebstock.
The detailed information now required about the cost and operation of Telecom’s services and business units will promote efficiency and investment throughout the industry, she adds.
Under the requirements, Telecom will release its first set of financial information in December for the financial year ending 30 June 2009. Information for the following year will include additional reporting on individual wholesale telecommunications services.
The Commission plans to monitor the implementation of these requirements and may issue additional or revised requirements as required.
It says it will also publish summaries and analyses of the information disclosed by Telecom to promote a greater understanding of Telecom’s operation and behaviour.
The Commission’s has also released a paper that explains the reasoning behind the latest requirements, which can be viewed here.
Full details of the accounting separation is available here.