2 box model (in the SOP)

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1 Term 2 box model (in the SOP) Definition Refers to the arrangement under which Telecom structurally separates into Chorus2 (network and some wholesale) and Telecom2 (retail and some wholesale), but is not required to set up separate business units within Chorus2 or Telecom2. 3 box model Refers to the current arrangement under Telecom s Operational Separation Undertakings that requires operational separation within Telecom between its network (Chorus), wholesale (Telecom Wholesale) and retail (Telecom) businesses. 3 year transition period (under the SOP) 10 year forbearance period (under the SOP) Refers to the 3 year transitional period for the copper regime. Refers to the 10 year period ending 31 December 2019 where the Commerce Commission is precluded from recommending regulation of particular fibre services. Act The Act Access seekers ADSL2+ Backhaul Bill Cabinet Chorus2 Chorus Copper Access seekers are persons who purchase wholesale products to create retail services. The Digital Subscriber Line (DSL) equipment Telecom is deploying in its Fibre-to-the-node (FTTN) roll-out for its copper network to 84% of New Zealanders. Telecom has indicated that its ADSL2+ equipment will provide speeds of at least 10 Mbps. Backhaul refers to transmission capacity in a network between aggregation points. The (TSO, Broadband, and Other Matters) Amendment Bill. Roadside cabinets which contain equipment for delivering broadband and other services to end users. Moving broadband electronics from the exchange to the cabinet (and therefore closer to the user) enables higher capacity broadband services to be delivered to the end user. Telecom s fixed network access business following structural separation. Indications are that the assets of Chorus2 will include the access network, the access network s active electronics, most exchanges and regional backhaul links. Open access undertakings arising under the Supplementary Order Paper (SOP) relating to Chorus copper network. MED

2 Undertakings Clothed Unbundled Bitstream Access (Clothed UBA) Cloud computing Co-location Communal infrastructure Concession period Cost based pricing Commercially Viable Customers (CVC) and Commercially Non-Viable Customers (CNVC) Digital Subscriber Line (DSL) Digital Subscriber Line Access Multiplexer (DSLAM) Equivalence (proposed in the Bill and the SOP) Equivalence of input (EOI) Exchange These would replace the Operational Separation Undertakings that Telecom is currently subject to. The bundle including the regulated wholesale bitstream service provided by Telecom, where the end-user also purchases a Telecom Plain Old Telephone System (POTS) telephony service. Cloud computing is shared resources, software and information located on remote servers accessed via the internet (as opposed to individual local servers). A wholesale service providing access seekers with colocation space in a Telecom exchange or cabinet for the purpose of installing their own equipment. Network infrastructure which is deployed independently of any specific end-user commitment and which is not located on end-users sites or premises. Refers to the 10 year concession period under the Preferred Commercial Model (PCM) for the UFB. Cost based pricing is a method for pricing wholesale services which allows service providers to recover the cost of providing a service and a reasonable rate of return. Commercially viable customers and commercially non-viable customers: these labels relate to the commercial viability of providing standard copper-based residential telephony as required under the Service Obligations (TSO). Digital Subscriber Line is a technology that allows highspeed transmission of data over copper telephone wires. The equipment located in either an exchange or a cabinet that enables the provision of broadband services over copper wires. Equivalence of supply such that third-party access seekers are treated in the same, or an equivalent way, to the service provider's own business operations, including in relation to pricing, procedures, operational support, supply of information, and other relevant matters. A standard for supply of services which requires exact equivalence between internal and external processes for supply of a service. The main difference from a general nondiscrimination standard is the requirement to provide the same back office systems and processes for internal and external supply. An exchange is a major node in the network where equipment is housed to deliver broadband and Plain Old Telephone System (POTS) services to end users. MED

3 Fibre Access Services Undertakings Fibre-to-the node (FTTN) Fibre-to-thepremises (FTTP) Geographical averaging Independent Oversight Group (EOG) Layer 1 Layer 2 Layer 3 Liable persons (proposed in the Bill) Local access infrastructure Local fibre companies (LFCs) Access undertakings similar to those under the Chorus Copper undertakings, but relating to the fibre access network. Fibre-to-the-node refers to a network upgrade that replaces the copper feeder (between the exchange and crossconnect cabinet) with optical fibre and upgrades the cabinet to enable the installation of DSLAM equipment. Fibre-to-the-premises broadband: (a) means a network structure used to deliver telecommunications services over fibre media that connects a powered node in a central office location (an exchange or equivalent powered facility) to an end-user s premises or building, or the optical distribution facility of an end-user s premises or building; and (b) includes the powered node in the central office location; and (c) includes that part of the overall telecommunications link that connects to the end-user s equipment. Geographical averaging means setting the same price throughout the geographical footprint of New Zealand. Refers to the body within Telecom, established pursuant to Telecom s Operational Separation Undertakings, that monitors and reports on Telecom s compliance with the Operational Separation Undertakings. Normally associated with the passive infrastructure in a network, and involves providing access seekers with access to physical infrastructure such as dark (unlit) fibre or copper so they can create their own network services Normally associated with the active infrastructure in a network, and involves using equipment to enable a bitstream, allowing access seekers to provide end-to-end network services over the physical infrastructure Normally associated with active infrastructure in a network, and often involves providing Internet protocol services Means a person who provides a telecommunications service in New Zealand by means of some component of a Public Network (PTN) that is operated by the person. Refers to the parts of the networks between major national aggregation points and end users. Joint venture companies set up under the Ultra-fast Broadband Initiative between Crown Fibre Holdings and MED

4 private parties to deploy and operate fibre networks. Local Service TSO Local Service TSO Deed Megabits per second (Mbps) Migration targets National backhaul network Network electronics Non-discrimination (proposed in the Bill and the SOP) Operational separation Plain Old Telephone System (POTS) Public Switched Telephone Network (PSTN) PSTN Migration Public Network (PTN) (proposed in the The series of obligations Telecom is obliged to meet under the terms of the Local Service TSO Deed, including network coverage and free local calling obligations. The TSO Deed for Local Residential Telephone Service of December 2001 between Telecom and the Government which sets out Telecom s obligations under the Local Service TSO. Megabits per second is a measure of the speed of data transfer per second over a telecommunications medium. Refer to the targets included in the Operational Searation Undertakings for UCLL and UBA for migrating users from non-equivalent to equivalent services, and from the PSTN to next generation voice services. Infrastructure facilitating transmission in a network between major national aggregation points. Refers to the physical electronics that facilitate the transmission of information over the copper or fibre infrastructure. Non-discrimination means that a service provider must not treat access seekers differently, except to the extent that a particular difference in treatment is objectively justifiable and does not harm competition in any telecommunications market. The restructuring of Telecom under the terms of Telecom s Separation Undertakings provided to the Minister of Communications and Information Technology on 25 March A traditional analogue telephony service that is often provided together with a broadband service. A Public Switched Telephone Network is a dial-up telephone network used, or intended for use, in whole or in part, by the public for the purposes of providing telecommunications between telephone devices. Migration of customers from copper based PSTN services to new generation voice services such as Voice over Internet Protocol (VoIP). Public Network: a network used, or intended to be used, in whole or in part, by the public for the purpose of providing telecommunications. MED

5 Bill) Resale Retail minus Separation day Resale is a retail service resold without the retailing elements, such as customer service, which are provided by the access seeker. Retail-minus is a method for pricing wholesale services by discounting from the retail price the retailing costs that the access provider avoids by wholesaling. Refers to the day when Telecom will formally separate into Telecom2 and Chorus2. This date will trigger many aspects of the regulatory regime under the SOP. Sharing arrangements (under the SOP) Refers to arrangements for the sharing of some assets/services/systems between Telecom2 and Chorus2 post separation. Specified network (proposed in the Bill) Supplementary Order Paper (SOP) Standard term determinations Structural Separation Sub-loop Unbundled Copper Local Loop (Sub-loop UCLL) Telecom Telecom2 Telecom s Separation Undertakings Development Levy A network that is declared to be a specified network under section 156AY of the Bill, in respect of which undertakings may be submitted under the regulatory framework of Part 2 of the Bill. Supplementary order paper to the (TSO, Broadband, and Other Matters) Amendment Bill. Refers to regulatory decisions made by the Commerce Commission setting the terms of access to regulated services. The process whereby Telecom will divide into Telecom2 and Chorus, roughly splitting the network/wholesale and retail businesses. The pair of copper telephone wires that run from a distribution cabinet to the end-user s premises. Telecom New Zealand as it stands before any structural separation. The remainder of Telecom s businesses following structural separation. Indications are that the assets of Telecom2 will include national backhaul links, the Public Switch Telephone Network (PSTN) assets, mobile and retail functions. Telecom s Separation Undertakings, as provided to the Minister for Communications and Information Technology on 25 March 2008 in accordance with section 69K(2)(c) of the Act and as varied by agreement between Telecom and the Minister for Communications and Information Technology on or before 28 May 2010 in accordance with section 69U of the Act. Development Levy which will be collected annually by the Crown from all liable persons and MED

6 (TDL) (proposed in the Bill) Services Obligations (TSO) Services Obligations (TSO) Instruments Total Service Long Run Incremental Cost (TSLRIC) Unbundled Copper Local Loop (UCLL) Unbundled Bitstream Access (UBA) VDSL Wholesale backhaul will be used to pay any Service Obligations (TSO) charges, fund non-urban telecommunications infrastructure development and emergency calling service system upgrades, or toward any other purpose that would advance the purposes of the Act. Services Obligations: a statutory process set out in Part 3 of the Act to provide for the delivery of telecommunications services that would not otherwise be delivered on a commercial basis or at an affordable price. Agreements between service providers and the Crown for the supply of telecommunications services to groups of endusers within New Zealand to whom the services may not otherwise be supplied on a commercial basis or at an affordable price. A costing methodology commonly used to determine efficient cost-based prices. This pricing methodology will be used in determining the price of UBA services after the transition period. The pair of copper telephone wires that run from the exchange to the end-user s premises. UBA is a wholesale bitstream data service. Access seekers use this service as an input into their retail broadband services. Naked UBA is UBA sold as a standalone service, while clothed UBA is UBA sold together with a Plain Old Telephone System (POTS) voice service. Digital Subscriber Line (DSL) equipment (or a setting on DSL equipment) capable of delivering broadband over copper cables of 50 Mbps or better. Wholesale backhaul is a service that access seekers can use to provide connectivity to take data from their Unbundled Copper Local Loop (UCLL) and Unbundled Bitstream Access (UBA) services as far as the point at which they interconnect with Telecom s network. MED

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