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Any change in the UCLL price will flow through to the total prices of the UBA service (for broadband services), the unbundled copper low frequency (UCLF) service (for voice services), and the sub-loop service (SLU).
These are the wholesale prices Chorus charges retail telecommunications companies like Spark, Vodafone and Call Plus to use its network.
The Commission has confirmed in a split decision it will not backdate the final UCLL and UBA prices, meaning Chorus cannot recoup the difference from the current price over the past year from retail telecommunications companies.
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We also hosted an industry workshop on initial processes.
In February 2014, we published a process and consultation issues paper on UBA.
The maximum monthly prices increase slightly each year for the next five years, but average a total of $41.69 over that period.
Tables detailing the UCLL and UBA price components for the next five years and set during this process are included in the background below.
The total wholesale price makes up roughly half of what consumers pay when they sign up for a standard $80 broadband plan.
The processes for setting prices for UCLL and UBA services are set out in the Telecommunications Act 2011. The first stage is to set prices by benchmarking against similar services in other countries.
View an infographic detailing the significant changes to the model since the July draft decision.
In our December 2014 decision, we proposed constant prices for the five year period.
The copper network is the means for delivering telephone and internet services to businesses and households all over the country.
UBA stands for unbundled bitstream access and this is the service that Chorus sells to retail telecommunications companies so that they can provide broadband services to businesses and consumers without replicating Chorus’ electronics or software.
This approach is called the final pricing principle (FPP).