Vodafone to increase prices

Friday, 18 December 2015, 4:33 pm
Press Release: Vodafone

MEDIA RELEASE
December 18, 2015

Vodafone to increase prices following the new copper access pricing handed down by Commerce Commission

The Commerce Commission’s decision to increase pricing for copper access is not in the best interests of New Zealand consumers, according to Vodafone’s Consumer Director Matt Williams.

Copper pricing in New Zealand is already high by international standards, and Williams says the new prices are even higher than what the Commission signalled earlier this year in its draft pricing proposal.

“It is very unfortunate that New Zealanders will continue to be charged much more for copper access than friends and family around the world,” Matt Williams said.

One positive to come out of the announcement is the Commission’s decision not to backdate its pricing decision. We welcome this as it was clear that backdating would have harmed competition and ultimately kiwi consumers.

The decision by the Commerce Commission to increase prices means that we have had to thoroughly review our pricing for residential fixed line services and introduce the following price rise:

$5 per month increase for ADSL / VDSL customers with broadband, or home landline and broadband connections.

The price rise will apply from 1 March 2016.

Prices are unchanged for customers with a landline only connections, and also for fibre customers (including UFB and Vodafone’s cable fibre network).

“It is particularly disappointing as New Zealand fixed line and broadband users already pay a higher price for legacy copper lines than they do for new fibre technology. Whilst copper services will remain an important part of ensuring connectivity for kiwi families and businesses, the future for New Zealand is fibre,” said Matt Williams.

New Zealanders are embracing communication services like never before and we are investing heavily in our network and in international connectivity to realise that potential.

We remain firmly committed to continued investment and industry leadership to ensure the communication needs of New Zealanders is supported through a reliable UFB network and innovative products and services.

We recently announced a $22million investment in the fibre cable serving Wellington, Christchurch and Kapiti. This investment, along with our continued partnership with Government to deliver wireless broadband and mobile coverage to rural New Zealanders as part of the Rural Broadband Initiative, and the continued expansion of our mobile network ensures we meet the future needs of New Zealanders in a rapidly changing domestic and global environment.

-ENDS-

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