Agreed upon procedures by ulm13840

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									7 June 2006

Mr. Tom Chignell
General Manager, Commercial Development
Vodafone New Zealand Limited
v.nue
20 Viaduct Harbour Avenue
Private Bag 92161
AUCKLAND.

Dear Tom

Agreed upon procedures

As agreed in our engagement letter dated 6 June 2006, we have performed the procedures requested by you,
and set out the results below.

As agreed our work has been performed in accordance with the Standard and Guidelines for Agreed Upon
Procedure Engagements issued by the New Zealand Institute of Chartered Accountants. The procedures
performed do not constitute an audit or a review and, consequently, no assurance on any assertions
contained in the financial information or with respect to the integrity of the Microsoft Excel Spreadsheet is
expressed. We disclaim any assumption of responsibility for the adequacy or otherwise of the procedures
requested by you.

We have undertaken the following procedures:

1. Downloaded the Microsoft Excel spreadsheet titled “CBA Model for Final Reconsideration – Public
   Version.xls” from the following web site:

   http://www.comcom.govt.nz/IndustryRegulation/Telecommunications/Investigations/MobileTerminatio
   nRates/reportsandsubmissions.aspx

2. In the worksheet titled “Commercial offers” input the information provided by Vodafone New Zealand
   Limited, as shown in Table 1 below, in the following areas:

   §   In the area titled “Telecom commercial offer: Mobile Termination Rates” located in cell C10 to cell
       H9 in the worksheet (the yellow-shaded cells in Table 2 below).

   §   In the area titled “Vodafone commercial offer: Mobile Termination Rates” located in cell C30 to
       cell H29 in the worksheet (the yellow-shaded cells in Table 3 below).
Table 1: Information provided by Vodafone
 Period                                     Mobile Termination Rate          Input into Cells on ‘Commercial
                                                  (NZ dollars)                      Offers’ Worksheet


 1 July 2006 to 31 March 2007                           0.20                C10:C15, D4:D6, C30:C35, D24:D26

 1 April 2007 to 31 March 2008                          0.17                D7:D15, E4:E6, D27:D35, E24:E26

 1 April 2008 to 31 March 2009                          0.16                 E7:E15, F4:F6, E27:E35, F24:F26

 1 April 2009 to 31 March 2010                          0.15                F7:F15, G4:G6, F27:F35, G24:G26

 1 April 2010 to 30 June 2011                          0.144                G7:G15, H4:H9, G27:G35, H24:H29



Table 2: Input Mobile Termination Rates – Telecom (Yellow-Shaded Cells, Cells C10 to H9)
Telecom commercial offer: Mobile Termination Rates

                2005         2006        2007         2008       2009        2010           2011
        Jan                     0.240       0.200        0.170      0.160       0.150      0.144
       Feb                      0.240       0.200        0.170      0.160       0.150      0.144
       Mar                      0.240       0.200        0.170      0.160       0.150      0.144
        Apr                     0.225       0.170        0.160      0.150       0.144      0.144
       May                      0.225       0.170        0.160      0.150       0.144      0.144
        Jun                     0.225       0.170        0.160      0.150       0.144      0.144
         Jul       0.260        0.200       0.170        0.160      0.150       0.144
       Aug         0.260        0.200       0.170        0.160      0.150       0.144
       Sept        0.240        0.200       0.170        0.160      0.150       0.144
        Oct        0.240        0.200       0.170        0.160      0.150       0.144
       Nov         0.240        0.200       0.170        0.160      0.150       0.144
       Dec         0.240        0.200       0.170        0.160      0.150       0.144




Table 3: Input Mobile Termination Rates – Vodafone (Yellow-Shaded Cells, Cells C30 to H29)
Vodafone commercial offer: Mobile Termination Rates

                2005         2006        2007         2008       2009        2010          2011
        Jan                     0.260       0.200        0.170      0.160       0.150      0.144
       Feb                      0.260       0.200        0.170      0.160       0.150      0.144
       Mar                      0.260       0.200        0.170      0.160       0.150      0.144
        Apr                     0.225       0.170        0.160      0.150       0.144      0.144
       May                      0.225       0.170        0.160      0.150       0.144      0.144
        Jun                     0.225       0.170        0.160      0.150       0.144      0.144
         Jul       0.260        0.200       0.170        0.160      0.150       0.144
       Aug         0.260        0.200       0.170        0.160      0.150       0.144
       Sept        0.260        0.200       0.170        0.160      0.150       0.144
        Oct        0.260        0.200       0.170        0.160      0.150       0.144
       Nov         0.260        0.200       0.170        0.160      0.150       0.144
       Dec         0.260        0.200       0.170        0.160      0.150       0.144




As required, we report in Table 5 the results obtained after inputting the data as described above as
displayed in cell D4 to cell E5 in the worksheet titled “Summary results & assumptions”.
Table 4: Results Shown in Cells D4 to E5 on the ‘Summary results &
         assumptions’ worksheet
Summary of Results

                            Sensitivity             CW              TS
                            Lin                   -$2,377,744   -$10,325,743
                            CED                  -$11,333,855   -$14,991,855



For the avoidance of doubt, we describe in Table 5 the cell references on the ‘Summary results &
assumptions’ worksheet corresponding to the figures shown in Table 4.

Table 5: Results of Agreed Procedures &
         Corresponding Cell References
 Cell reference               Amount


 D4                         -$2,377,744

 D5                         -$11,333,855

 E4                         -$10,325,743

 E5                         -$14,991,855



This letter should be read in conjunction with our engagement letter dated 6 June 2006. This report relates
only to the items specified above and does not extend to any financial information of Vodafone New
Zealand Limited.


Yours sincerely
Ernst & Young Corporate Finance Limited




Peter Goss                                 Michael Stanley
Director                                   Director

								
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