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

Gordon Campbell:
On Winston Peters’ Latest Bout Of Immigrant Bashing

So in the latest 3News-Reid Research poll, New Zealand First and the Conservatives have been the big winners. It is only one poll, but rather than cannibalising each other’s vote, Colin Craig and Winston Peters do seem to be managing to find the room to co-exist...

Poll fixation though, is a symptom of horse race journalism. To date, the focus has been on the poll numbers for New Zealand First – at 6.3% in this latest poll – and the power that this puts in Peters’ hands. Few are questioning how he’s got to this happy place, and what it says about the mood of the electorate. Yet as sure as night follows day, Winston Peters is once again peddling bile at the immigrants in our midst. More>>

 

Parliament Today:

Collins 'Misinterprets Media Reports': "Too Compromised To Remain Justice Minister"

Bizarre claims by Judith Collins this morning that she had been cleared of inappropriate behaviour by the Privacy Commissioner demonstrates she is too compromised to remain Justice Minister, Labour MP Grant Robertson says. More>>

ALSO:

Labour On Climate Change: Focus On The Now For The Future

A Labour Government will put in place a comprehensive climate change strategy focusing on both mitigation and adaptation, establish an independent Climate Commission and implement carbon budgeting, says Labour Climate Change spokesperson Moana Mackey. More>>

ALSO:

Gordon Campbell: On National’s Housing Assistance Plan

So, as many as 90,000 people could derive some benefit from National’s housing assistance plans for low and middle-income earners... Yet in reality, the benefits seem likely to be insignificant, and they will be skewed towards those at the top end of the income group that’s supposedly the target. More>>

ALSO:

Election Data Consortium: National’s Worst Case Scenario At Stage One?

A month out from the general election and ipredict traders are still forecasting National’s vote to slip below current polling levels and there is potential for it to fall further. More>>

ALSO:

From The Scoop Video Archive: PM Says SIS "Told Me" About OIA Release

In a press conference immediately following an controversial OIA release of notes on an SIS briefing to then Labour leader Phil Goff, Key said "at that point [Tucker] told me he'd release it ...". Since the release of Nicky Hager's 'Dirty Politics' Key has denied being personally informed and said references by officials to 'the PM' being told briefed referred to his office. He now says the same about his own statement. More>>

ALSO:

  • Scoop Video in the news - New questions over Key claims | NZ Herald News - Stuff.co.nz
  • Earlier - Felix Marwick: Laying out facts over SIS documents - Newstalk ZB
  • Labour - Director’s letter contradicts Key’s claims
  • ACT - The Letter - 26 days to go
  • TV3 Video - Housing issue nudges Dirty Politics aside - David Cunliffe: Key's SIS explanation 'defies belief' - SIS leak came from Key's Office - Goff - Key 'categorically denies' Slater OIA discussion - Video: Key faces more Dirty Politics questions

  • TVNZ - Winston Peters: ‘Dirty Politics' is a new low
  • The Nation - Debate Between Grant Robertson And Russel Norman
  • NZ First - “The Words Mean What I Say They Mean”
  • Schools, PPTA Sign Up: Primary Teachers And Principals Vote Down Govt Plan

    Teachers and principals have voted overwhelmingly against the Government’s controversial “Investing in Educational Success” policy, including proposed highly-paid principal and teacher roles. More>>

    ALSO:

    Gordon Campbell: On The Usual Round Of Mud Slinging And Name-Calling

    This week gave an interesting example of how hard it is to untangle the reality from the slanging matches. The issue that emerged early this week could hardly be more important. Does the government intend to cut spending in health, education and on the environment if re-elected, or not? More>>

    Earlier:

    Electionresults.co.nz: National and NZ First Rise in Roy Morgan Poll

    National has bounced back in the latest Roy Morgan Poll but the big winner has been New Zealand First who rise to their highest level of support since September 2013. More>>

    ALSO:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
    Parliament
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news