Introduction
Purpose and Scope
To support the review of the Telecommunications Service Obligations (TSO) framework, this document presents information profiling customers, assessed as commercially non-viable (CNV) for TSO local residential telephone service, to assist with a discussion of issues to be addressed by the TSO review.
Commercially non-viable customers are profiled to identify their prevalence, geographic spread and contribution to the overall "net cost" TSO charge for the supply of local residential telephone service. The classification of local service customers as commercially viable (CV) or commercially non-viable (CNV) accords with the applicable criteria and modelling for the final 2003/04 TSO Local Service determination by the Commerce Commission.
Glossary
A "customer cluster" is a group of telephone customers whose access lines collectively connect to the same feeder cabinet enclosing equipment facilitating the supply of local telephone service to those customers. A customer cluster is the lowest level at which the commercial viability of supplying local telephone service is assessed to calculate the ‘net cost' TSO charge applicable for the Local Service TSO.
A "CNV customer" is defined as an individual customer located in a customer cluster classified as commercially non-viable.
A "Very Unprofitable Cluster" is a CNV cluster where the average loss per customer on an annual basis is greater than $1000
A "Moderately Unprofitable Cluster" is a CNV cluster where the average loss per customer on an annual basis is between $300 and $1000.
A "Mildly Unprofitable Cluster" is a CNV cluster where the average loss per customer on an annual basis is less than $300.
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