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

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news