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

 


Telecom backs setting copper prices until 2020

Telecom backs setting copper prices until 2020, warns against getting too far away from input cost

By Paul McBeth

Sept. 23 (BusinessDesk) - Telecom Corp, the country’s biggest telecommunications company, is backing government moves to set the price for access to Chorus’ ageing copper network until 2020 to protect the national roll-out of fibre lines, though it warns against getting too far away from the underlying costs of the service.

Auckland-based Telecom supports the government’s ultrafast broadband initiative to help fund a fibre-based network across three-quarters of the country, and accepts that if regulated pricing on the old copper network undermines the programme’s success something needs to change.

“Ongoing debates about copper pricing risk distracting our industry, and customers, from the far more important questions of how, as a country, we can best take advantage of the very valuable fibre assets we are investing in,” chief executive Simon Moutter said in a statement. “Above all else, our industry needs input pricing certainty.”

Communications Minister Amy Adams sought a review of law governing the sector after Telecommunications Commissioner Stephen Gale proposed sharp cuts to the regulated price of unbundled bitstream access, a copper-based service, something the government viewed as undermining the economics of the fibre network it is bankrolling.

The proposed cuts to UBA pricing came after a three-year freeze and were seen as a way to offset the national averaging of the price of unbundled copper local loop access, which effectively increased prices for urban customers, accounting for about 70 percent of users as part of a proposed transition period.

Telecom backs the third option in the review, in which the government would set the prices for UCLL component of the old network, leaving the Commerce Commission to set the price for UBA.

The company said the total monthly cost of copper lines is closer to the bottom end of the discussion document’s propose band between $37.50 and $42.50, though a realistic range might be between $35 and $40.

If prices are set too high on the copper lines, the market will react to the distortions and incentives created, and should only be set at an above-cost level to allow the UFB build to be completed on time, Telecom said.

“That means we need to be confident that total copper price – if it is not to be set at cost – is set at least in close proximity to cost,” it said.

Chorus, the regulated network operator spun out of Telecom in 2011, backed a total price of $45.92 in its submission.

Telecom said if the regulated copper prices are tweaked other options for fibre should also be considered, such as a better entry-level fibre service, downward adjustment to the price path for fibre products, or giving retail service providers unbundled fibre access earlier than the current 2020 date.

(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