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

 

Parliament Today:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news