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

 


Chorus wins in push-back against proposed copper pricing

Chorus wins in push-back against proposed copper pricing, faces smaller reductions

By Paul McBeth

Dec. 3 (BusinessDesk) - Chorus, the telecommunications network operator, won't have to cut its prices for copper-line services as deeply as initially feared after the antitrust regulator set pricing over the unbundled copper local loop.

The Commerce Commission has set the new geographically averaged price at $23.52 per month per line from Dec. 1, 2014, a 3.9 percent reduction to the prices set in 2007, it said in a statement. That's a smaller cut than the $19.75/month price flag in its draft determination. Urban UCLL prices have been set at $19.08 and rural at $35.20, effective immediately.

The UCLL service lets the telecommunication companies use the copper network between an exchange and an end-customer's premises to offer their own voice and broadband services.

"Following feedback, submissions and a conference in September on this topic, the commission and most parties now agree that there is no clear evidence that the shorter lines cost less and that it is preferable that all lines be priced the same regardless of length," the regulator said. "This is the approach the commission has adopted in its final decision."

The draft determination created uncertainty around Chorus' future, which argued the cheaper pricing regime would be unfair and deter people from buying into the fibre network it’s rolling through the country.

Chorus was spun-out from Telecom as a separately-listed company last year to free up the telecommunications company from its regulatory burden and allow the network operator to successfully win a billion dollar subsidy to build a nationwide fibre network and rural broadband system.

Some 80 percent of the network company's revenue is still derived from the ageing copper network, and is subject to a pricing review by the Commerce Commission.

Shares in Chorus climbed 1.8 percent to $3.40 in trading on Friday, and have gained 9 percent this year.

Telecommunications Commissioner Stephen Gale said it was difficult to determine relevant benchmarks with little international evidence, but concluded "the relevant costs in New Zealand are likely to have dropped since 2007."

In a separate statement, the antitrust regulator proposed a full unbundled bitstream access service price at $32.45 per month, effective from Dec. 1, 2014, and will set a final benchmarked price in June after a period of consultation. The price is currently $44.98.

UBA services let telecommunication companies supply broadband services to customers without having to replicate Chorus' electronics or software.

The most significant part of the proposed cut is the reduction in the non-UCLL component, which fell to $8.93 from $21.46 for the basic service.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news