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Copper price bottom line is cheaper broadband

Clare Curran
Associate ICT Spokesperson

17 February 2014

Copper price bottom line is cheaper broadband

The Commerce Commission should reject Chorus’ offer of its own pricing analysis to speed up the final decision on copper prices, Labour’s Associate ICT spokesperson Clare Curran said today.

“This is an issue of trust and Kiwis are already wary of Chorus. The company does not have a great track record for efficiency or competence when it comes to rolling out the ultrafast broadband network.

“Any recommendations Chorus makes which involve ‘trust us to come up with the right answers’ should be regarded with healthy scepticism. The company wants the best price possible.

“Chorus argues the benefit is clear - it's the real thing and it's quick. The downside is also clear - we have to take Chorus at its word and it doesn't allow for any Chorus inefficiencies.

“The methodology used by the Commission should not be determined by Chorus, given its track record and the justifiable concerns that the outcome of a final pricing process would suit its shareholders’ bottom line.

“The bottom line for the Commission is clear. Affordable prices for consumers, a competitive industry and an efficiency network in copper and fibre. If Chorus can’t deliver those things, then they’re in the wrong game,” says Clare Curran.

ENDS

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