Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Slower service for a higher price

13 January 2006

Slower service for a higher price: duopoly stitch-up hurts broadband users Media release - for immediate release

"Today's announcement of a deal between Telecom and TelstraClear on a range of wholesale matters is good news for TelstraClear, but potentially bad news for Internet users," said InternetNZ Executive Director Keith Davidson, commenting on the late-afternoon release of details of a settlement between the two companies.

The deal covers discount for wholesale services including home phone lines, lower interconnection rates and broadband services.

"In particular the two Unbundled Bitstream Service offerings – 256kb and 3.5mb downstream with 128kb upstream – are inferior to plans that would have been available to TelstraClear under the Commerce Commission’s UBS determination announced last year.

"Most New Zealanders will only be able to get broadband at half the speed they would have been able to get under the Commission’s determination.

"While this is better than the offers currently available, it is truly a case of 'what might have been'," said Keith Davidson.

"It is also a pity that the two companies could not agree on a faster upstream speed, given that their negotiations were not bound by the regulatory framework. A lift to the 128kb upstream link would have been a major improvement for New Zealand broadband consumers.

"128kb upstream in an unbundled Internet service is very slow; such a service is still not true broadband and should not be described as such. Comparative countries like the UK and Australia have true broadband: so should New Zealand.

"This action today simply shows that the current market structure and the inadequate, light-handed regulatory framework applying to telecommunications leads to unsatisfactory outcomes for Kiwi consumers.

"We will look forward to seeing David Cunliffe's response, when he makes his plans for regulation public later this year," Keith Davidson concluded.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>