Telecommunications regulation in New Zealand: The court of appeal's decision in Clear Communications v Telecom Corporation

Carl Blanchard

Telecommunications Policy, 1994, vol. 18, issue 9, 725-733

Abstract: In December 1992 the High Court of New Zealand ruled in favour of Telecom New Zealand's negotiating strategy with Clear Communications. This article reviews the Court of Appeal's judgment, a judgment which overturned the High Court's acceptance of Telecom's 'Baumol-Willig' pricing model. The Court dismissed the use of the model because it priced access at the opportunity cost of supply -- a price built on perfect market contestability and monopoly profits. This article reviews the judgment and its implications for telecommunications regulation in New Zealand.

Date: 1994
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