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

 


Calls for Chorus - Put forward constructive pricing proposal

Media Release

15 December 2013

Telecom calls on Chorus to put forward constructive pricing proposal that does not erode current telco network and service levels

Chorus should put forward a constructive proposal to resolve its funding issues and achieve industry pricing certainty that does not involve eroding the current network and service levels across its monopoly copper network.

Telecom is concerned that the Ernst & Young report into Chorus' financial position, released yesterday, indicates Chorus' funding gap could be partially closed by $400-450 million of "cash flow savings initiatives" suggested by Chorus management.

Although the EY report does not detail these initiatives, it indicates they may have adverse effects on Chorus customers and consumers, including:  a reduction in current service levels, which others have speculated could mean artificially reducing copper broadband speed; an increase in network fault rates as Chorus moves to a reactive rather than proactive approach to network maintenance; longer lead times to repair faults; and an increase in the number of businesses and consumers who can't get a telco connection, with Chorus only agreeing to new connections on a 'full cost recovery basis'.
Actions such as these will penalise many consumers and businesses and represent a degrading of the high-quality telecommunications infrastructure enjoyed today by New Zealanders.  Eroding the quality of the current telco network and service levels is not an appropriate way for Chorus to resolve its current financial difficulties.
Telecom has consistently taken the view that a collective industry solution, which appropriately balances the needs of Chorus, its customers (the retail service providers), consumers and taxpayers is the best way to resolve the current uncertainty affecting Chorus' UFB fibre rollout and the wholesale pricing of telecommunications services over the existing copper network. 

Telecom played a lead role in industry discussions earlier this year that sought to put a collective proposal before Government. Although these discussions did not reach a consensus, Telecom remains willing to engage with Chorus, other RSPs and other interested parties in reaching a solution that ensures the country will reap the significant economic benefits from the new fibre network whilst maintaining the integrity of the existing copper network, upon which the vast majority of New Zealanders still rely.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news