Chorus asked to amend and resubmit deed of undertaking for copper network

Communications and Information Technology Minister Steven Joyce has declined to approve Chorus’s open access deed of undertaking in relation to its copper business.

The deed of undertaking was submitted by Telecom, on behalf of Chorus (assuming structural separation goes ahead) on 22 July 2011.

Public submissions were sought on the deed, which set out the requirements for open access on Chorus’s legacy fixed copper network if structural separation occurs.

The Minister has decided that the deed as submitted does not meet the requirements, as set out in the amended Telecommunications Act 2001.

“We need to get the deeds of undertaking right, while at the same time recognising the changes that will occur from the structural separation of Telecom” says Mr Joyce.

The Minister has sent a letter to Telecom setting out the reasons for declining to approve the deed as submitted.

“The Government has not imposed operational separation within Chorus. However, I have asked for clarification of how the equivalence of inputs standard applies within Chorus, which will not have separate business units," says Mr Joyce.

“I have asked Chorus to improve transparency in the deed, particularly in relation to the disclosure of information to the Commerce Commission. As requested by many submitters, I have also asked Chorus to provide more transparency as to how the contract between Crown Fibre Holdings and Chorus will interact with the deed.”

Chorus is working with the Ministry of Economic Development to submit revised deeds. Chorus will submit an amended version by 21 October 2011.

Further information is available on the Ministry of Economic Development’s website at www.med.govt.nz/ultra-fast-broadband