The Act requires that equivalence be delivered on an Equivalence of Inputs (EOI) basis, meaning that, where Telecom is required to provide service providers with a relevant service, Telecom must:
- consume the same relevant services as inputs in the provision of specified wholesale and retail services;
- on the same terms and conditions (including price);
- using the same systems and processes, within the same time periods;
- with access to the same data and commercial information.
Telecom agreed the Undertakings with the Crown in a legally enforceable deed and, on 31 March 2008, a business unit to supply access services, Chorus, and a wholesale unit to supply various wholesale services, Telecom Wholesale, were established as part of the Separation Undertakings. (Undertakings).
The Undertakings include enforceable milestones that Telecom must meet over a defined period in order to fully implement equivalence. There are specific migration plans for relevant access and wholesale services to be supplied on a fully equivalent basis by 31 December 2011. Additionally the Undertakings include a specific migration path with set milestones to allow at least 80 per cent of PSTN lines to be high speed broadband capable by 2012.
Telecom's compliance with their Undertakings is primarily monitored by an independent oversight group (IOG) which reports to the Commission and the Telecom Board under conditions prescribed in the Undertakings.
The Commission has the overall role of monitoring the broader effects of the separation arrangements as well as using information from the IOG, Telecom and other sources to identify either breaches or the potential for breaches of the Undertakings. The Commission has the explicit role of enforcing compliance with the Act and can make recommendations to the Minister for Communications and Information Technology if it considers variations and exemptions to the Undertakings are required.
The Telecommunications Act provides a process for the Undertakings to be varied. Telecom has requested four variations, three of which have been agreed to by the Minister. All public submissions can be found on the MED website.
Other sources of information
- Telecom wholesale loyalty offer investigation
- Implementation of the Undertakings
- Commission guidance on non-discrimination obligations under the Telecom Seaparation Undertakings
