competition & regulatory advice
Competitive markets are extremely powerful drivers of human progress. However, they need to be supported by social constructs such as property rights, and do sometimes fail. In some situations, the competitive process itself is threatened; in other cases regulation can improve economic wellbeing. Covec understands these issues deeply, which is why we are at the top of so many contact lists for work in this area.
Air cargo cartel litigation
Provided expert advice regarding how the relevant market for inbound air cargo services should be defined in the context of a Commerce Act price fixing case.
Analysis of proposed Air New Zealand - Virgin Alliance
Covec undertook a quantitative competition and welfare analysis of the proposed trans-Tasman alliance between Air New Zealand and Virgin.
Competition & regulatory economics training
Presented three-day short course on competition economics and network regulation.
Competition between supermarkets
Expert testimony on economic issues arising from a proposal for a new Pak'nSave supermarket at Wairau Rd on Auckland's North Shore, before the Environment Court.
Competition law principles for telecommunications and broadcasting
Review of the telecommunications and broadcasting industries in Macao, and development of principles to guide drafting of competition law for these sectors.
Competitive effects of a vertical merger
Expert testimony on the competitive impact of a proposed vertical merger in the Victorian electricity industry, before the Federal Court in Melbourne.
Competitive impacts of retail development
Analysis of the impact of a proposed development at Takapu Island in the Wellington region on the viability of nearby centres.
Efficient transmission pricing
Economic analysis of the efficient treatment of loss and constraint rentals arising from nodal pricing of electricity.
Gas pipeline competition
Economic analysis of the welfare effects of constrained competition on a major gas pipeline.
Hedge contracts for electricity
Analysis of the market for electricity hedges, the influence of market structure and possible interventions to improve market depth and liquidity.
Input methodologies for regulation
Peer review of a discussion paper setting out the Commission's views on input methodologies pursuant to the 2008 amendment to Part 4 of the Commerce Act.
Interchange fee setting and other credit card network rules
Economic advice on competition issues arising from the setting of interchange fees in open (four-party) credit card networks.
Liberalisation of telecommunications in the Solomon Islands
Negotiating an early end to the monopoly telecommunications franchise, including design of regulatory regime, interconnection rates and estimation of fair compensation.
Liberalisation of telecommunications in Vanuatu
Negotiation of an early end to the monopoly telecommunications franchise including compensation modelling. Provision of complete regulatory service for first 18 months of the new competitive regime, including design and implementation of universal access policy.
Local loop unbundling
Provided advice on price benchmarking and reviewed modelling of the economic effects of local loop unbundling in New Zealand.
Merger analysis in bedding industry
Analysis of whether a merger affecting bedding, foam and underlay markets would substantially lessen competition.
Merger analysis in carpet industry
Review of the competition implications of a proposed merger in the carpet manufacturing sector, including analysis of import competition.
Merger analysis in the chicken industry
Economic submissions to the Commerce Commission on the competitive effects of a proposed acquisition of Brinks chicken companies by Tegel.
Merger analysis in the waste industry
Detailed empirical modelling of the cost and demand for different forms of waste collection in cities of varying sizes, including modelling economies of route density.
Milk industry competition
Advice on competition in the wholesale market for milk in New Zealand.
Provided advice on mobile competition and regulatory issues in various Pacific markets, including evaluation of market definition and market power.
Provided expert advice and analysis on economic, competitive and regulatory issues relating to termination of calls on mobile networks.
Mobile termination cost-benefit analysis
Development of an economic model of the welfare effects of mobile termination regulation in Australia. This involved a quantification of benefits to fixed-line subscribers versus detriments arising from the waterbed effect.
mobile termination rate benchmarking
Econometric benchmarking of mobile termination rates
mobile termination rate glidepaths
International benchmarking of the characteristics of mobile termination glidepaths.
National roaming and co-location
We advised on economic issues relating to regulation and optimal pricing of mobile national roaming and co-location services. This included developing a cost model of a roaming-based entrant.
Postal network access
Advice on price and non-price terms of access to New Zealand Post’s delivery network.
Re-benchmarking of prices for the unbundled copper local loop
Submission to the NZ Commerce Commission on its review of UCLL prices, including econometric analysis of benchmarking data, critique of proposed glide path and consideration of impact of UCLL pricing on the uptake of fibre.
Shipping buyers' club
Advice on competitive effects of a proposed buyers’ club in shipping.
Provided expert advice on competition and regulatory issues relating to price and non-price conditions of access to unbundled sub-loop services.
Tax and depreciation issues in regulation
Analysis and expert testimony on the economic implications of alternative treatments of taxation in the assessment of gas pipeline regulation, before the High Court in Wellington.
Universal service costs
Analysis of economic issues associated with the TSO instrument under the Telecommunciations Act 2001, including matters related to technological optimisation.