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

 

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news