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


Chorus wants regulator’s pricing review set aside

Chorus tells High Court it wants regulator’s pricing review set aside

By Paul McBeth

March 18 (BusinessDesk) - - Chorus, whose shares have tumbled 53 percent in the past two years because of price cuts imposed by the regulator, wants the Commerce Commission’s review of network pricing set aside, the High Court heard today.

The network operator told Justice Stephen Kos that it wants the initial pricing principle (IPP) process for its unbundled bitstream access services set aside and for the regulator to go back to the drawing board.

The Commerce Commission has ordered Chorus to slash prices for access to its copper lines, a move the company says will undermine its profitability and its ability to build the government-sponsored fibre network.

Chorus counsel David Goddard QC told the High Court in Wellington that the IPP process could be restarted without hindering the move to a more robust price review.

Justice Kos said he would have “serious reservations” about setting aside the review and ordering the process to start again.

Chorus’s share price has slumped since November 2012, when the Commerce Commission first made public its view that regulated prices should be cut. The shares rose 1.2 percent to $1.70 on the NZX today.

The stock selloff should have told the regulator the market didn’t anticipate the size of the proposed reduction in pricing, and made it consider section 18 of the Telecommunications Act, which aims to protect innovation and investment in the sector, Goddard told the court yesterday.

The regulator also should have considered what impact regulatory shocks might have on the wider market, and should have telegraphed its thinking, he said.

Chorus is appealing the commission’s final determination in November last year setting the unbundled bitstream access monthly price at $34.44 per line, up from the $32.35 price initially mulled in its draft decision, with the additional UBA component accounting for $10.92 and the unbundled copper local loop accounting for $23.52.

Goddard told the court yesterday that the regulator erred in law when setting the price Chorus can charge for access to its UBA services in that it didn’t have any evidential basis to narrow its inquiry and ignored a section of the legislation aiming to support the government’s goal of building a nationwide fibre network.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news