Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Chorus comfy but consumers lose out

Clare Curran
Communications and IT Spokesperson

3 December 2012

Chorus comfy but consumers lose out

New Zealand consumers have come off second best to Chorus following the Commerce Commission’s decision on what the main telco network operator can charge for its phone lines, says Labour’s spokesperson for Communications and IT Clare Curran.

“The Commerce Commission’s ruling would see the price the telco can charge for its phone lines fall from its current average of $24.46 a month to $23.52, ultimately stifling new investment and innovation in the market.

“Today’s decision keeps copper prices at a level which guarantees returns to Chorus, but which won’t result in a competition battle between retail providers. Without competition for new services consumers lose out.

The reaction from Chorus shareholders today is also interesting given the Commission’s pricing announcement is much closer to the Chorus demands than to the other unbundled telcos.

“The decision is also a first for new telco Commissioner Stephen Gale whose appointment earlier this year was marred with controversy. It reinforces views that the incumbent monopoly provider and its investors are favoured at the expense of new services and new investment.

“The decision is also difficult news for the government, which needs incentives for New Zealanders to change from the old copper network to fibre. In the absence of investment in new services and offerings to consumers, the government has been relying on a price incentive for the switch.

“It appears that this won’t be happening anytime soon and may be why Minister Amy Adams has not accepted the decision, but rather asked officials to reviews its effects and report back to her.

“Meanwhile Chorus, which just last month admitted to its shareholders that the vast bulk of its revenue would be derived from copper over the next decade, remains in a strong position.

“New Zealanders could be stuck on copper services for years to come if there are not real incentives to make the fibre switch.

“On the face of it, today’s decision is responding to what the incumbent wanted -protection of its long-term interests, rather than concern for the wider interests of an industry reliant on competition,” Clare Curran said.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

#SaveCampbellLive : Mediaworks Delivered 104,000 Petition Signatures At TV3's Newton HQ
#PonyTailGate #TailGate Full Coverage

Pukeahu Park : ANZAC 100th Anniversary Dawn Service In Pictures

Roughly 18,000 people gathered this morning at Pukeahu Memorial Park for the Anzac day centenary. Anticipating the large turnout, patrons arrived as early as 4.30. It was virtually impossible to get near the Memorial after 5am. By 6, the crowds on Taranaki Street had stretched as far back as the Z Petrol station.

The screens erected around the park displayed the live events to those who had turned up. The heat generated by the huge number of people caused many to take a turn. Medics and ambulances were on hand for the fainting crowd members. Only twenty minutes into the ceremony, one medic said they had already dealt with 15 to 20 spells. More>>

 

PARLIAMENT TODAY:

War: What’s To Commemorate?

Gordon Campbell in Werewolf: Is there anything that can be validly commemorated on this 100th anniversary of Gallipoli? Beyond, that is, a fleeting sense of empathy with the thousands of soldiers killed or wounded on April 25 1915 and in the months thereafter, until the whole thing was finally called off in December 1915. More>>

MORE IN WEREWOLF:

ALSO:

Peter Ellis Case: Minister Declines Request For Commission Of Inquiry

Justice Minister Amy Adams has declined a request from supporters of Peter Ellis for a Commission of Inquiry on the basis that an inquiry cannot be used to determine the liability of any person. More>>

Quakes: New Process For Red Zone Crown Offers

Canterbury Earthquake Recovery Minister Gerry Brownlee has announced a process to give everyone a say on the Crown offers to owners of vacant, commercial/industrial and uninsured properties in the Residential Red Zone. More>>

ALSO:

Gordon Campbell: On The Battle Obama Is Waging Over The TPP

For the past two and a half years, this column has been arguing that the fate of the Trans Pacific Partnership (TPP) deal will hinge on whether US President Barack Obama can win Trade Promotion Authority (TPA) from Congress... Last week, the White House finally, finally unveiled a draft TPA Bill. More>>

ALSO:

Greens: Govt Breaks Free Doctors Visit Promise To Kids

Documents obtained by the Green Party show that the Government decided to fund only 90 percent of doctors’ visits for children suffering from an injury in an attempt trim the cost of the so-called “free” visits. More>>

ALSO:

Other Wars: Extension Of NZDF Commitment In Afghanistan

The New Zealand Defence Force’s commitment of mentors and support staff to the Afghan National Army Officer Academy in Afghanistan has been extended out to December 2016, Defence Minister Gerry Brownlee says. More>>

PM's Press Conference: Auckland Property Prices Increasing "Too Rapidly"

John Key accepted that Auckland property prices 'are going up too rapidly” in a press conference held today in Wellington, however he said that this is not anything new. More>>

ALSO:

Press Conference: ANZAC PMs Concerned About ISIL Bringing The War Home

Prime Minister Key and Prime Minister Abbott spoke of the bond formed between Australia and New Zealand in the “baptism of fire” of Gallipoli. Abbott stated that New Zealand and Australia’s values and interests are linked, and this is reflected in the joint operation in Iraq which will begin shortly. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news