Clare

CURRAN

Associate ICT Spokesperson

24 February 2014 MEDIA STATEMENT
Govt must rule out Chorus throttling internet speeds

Crown Fibre Holdings must not let Chorus degrade its copper broadband service to cover the cost of its ultra-fast broadband roll out, Labour’s associate ICT spokesperson Clare Curran said today.

“The Chorus half yearly announcement today said the company will, ‘move its business model towards full cost recovery and utility-style operation’. That means it’s either going to charge retailers more or run down its copper broadband service so people have to switch to ultra-fast broadband.

“Crown Fibre Holdings has been negotiating in secret with Chorus since December. It must come clean on its strategy and what concessions have been made to Chorus to change the way it delivers broadband over copper.

“Crown Fibre Holdings has no mandate on copper pricing. It is up to the Commerce Commission to decide the final pricing process. Today’s announcement is a worrying indication that the Crown agency is pushing a parallel process which will benefit Chorus and not consumers.

“The Chorus announcement appears to be proposing some variation on the ‘nuclear option’ which will only disadvantage customers and throw the whole broadband service into confusion and turmoil.

“If this is the strategy proposed by the Crown agency acting on behalf of the Government, then they’re again choosing to put the corporate bottom line above the consumer.

“The Minister Amy Adams must rule it out and Chorus should explain what efficiencies it will make to achieve full cost recovery of its fibre rollout. Kiwis on the copper network should not have to pay more or suffer slower speeds,” said Clare Curran.

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