Telecom NZ (ASX:TEL) will not be relieved of obligations to provide its Unbundled Bitstream Access backhaul service at regulated prices, after a decision from the Commerce Commission (ComCom).
The Commission said it had determined that there are no significant competing services to the UBA backhaul service, which allows other ISPs to supply broadband services without replicating Telecom's copper local loop.
The regulator currently specifies the terms and prices for providing interconnection via the UBA service.
“Competitive UBA backhaul markets have not developed because of the small number of enhanced UBA services that are being purchased from Telecom, Commerce Commission telecom commissioner Ross Patterson said.
He added that unlike the unbundled local loop (ULL) backhaul market, there is “no appropriate commercial service that would allow alternative backhaul providers to aggregate backhaul traffic inside the exchange.”
ComCom will review all UBA backhaul links annually, and release Telecom NZ from its obligations in areas where sufficient competition exists.
This was the first review of UBA backhaul services since ComCom published the terms and conditions for backhaul access in June 2008.
ComCom earlier this month announced that by contrast, 88 of Telecom NZ's ULL copper backhaul links now do face sufficient competition to no longer require regulation.
TEL shares grew 0.68% in Wednesday's trading to $1.470.