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 What John Key Should Be Asking Joe Biden

No doubt, US Vice-President Joe Biden will be updating Prime Minister John Key on the chances of a TPP vote taking place in the ‘ lame duck’ session of Congress that’s held between the November’s election and the inauguration of a new President in January. More>>

ALSO:

Make NZ Make Again: Greens Will Establish A Minister For Manufacturing

The Green Party announced today that it will establish a Minister for Manufacturing in Cabinet, to better represent the interests of manufacturers and ensure they thrive. The Minister will be inside Cabinet and have responsibility for the long-term interests of the manufacturing sector. More>>

ALSO:

Cannabis Party: Treasury Figures On Cost Of Criminalisation

Figures released by Treasury prove the economic viability of The Cannabis Party's policy, while destroying the credibility of police claims about cannabis harms. More>>

ALSO:

Green Party: Investigation Into Mental Health Facilities Shows Disarray

The Health Minister must urgently launch an inquiry into mental health services, after serious issues with the standard of care at mental health and disability facilities around the country were revealed today, the Green Party said. More>>

ALSO:

Apparently He Means 'Years 0-8': Seymour Announces 4th Partnership Schools Application Round

“The continuing growth of this policy reflects the achievement of the eight existing Partnership Schools, and the strong levels of interest educators and community leaders are showing in the Partnership Schools model and what it offers students and their families,” Mr Seymour says. More>>

ALSO:

Trust Directors: Urban Māori Win Case Against Te Ohu Kai Moana

The National Urban Māori Authority (NUMA) and Te Waipareira Trust have succeeded in their claim over a $20 million trust set up for the benefit of urban Māori, meaning all directors of the trust must represent Māori who are not affiliated with an iwi. More>>

New Model: Carbon Tax Could Lower Emissions And Boost Economy

A carbon tax targeting emissions-intensive industries, along with a revamped Emissions Trading Scheme (ETS), could boost economic growth, with the extra tax generated used to cut GST from 15 percent to 12.5 percent. More>>

ALSO:

Budget Docs Release: ACC Sought $158mn In Budget 2016, Got $26.4mn

The Accident Compensation Commission requested an extra $158 million in funding for 2016/17 from the government ahead of Budget 2016, but Treasury instead recommended an interim payment of just $26.4 million be funded to tackle demographic changes, papers published by the government show. More>>

ALSO:

Submissions Sought: Māori Party Joins Opposition Housing Inquiry

People who are homeless, those who were once homeless, those working with the homeless and concerned New Zealanders are being asked to share their experiences and solutions to this growing issue with the Cross-Party Homelessness Inquiry. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news