Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Kiwis will benefit provided the Government don’t intervene

Media Release
November 5, 2013

Kiwis will benefit provided the Government don’t intervene

A Commerce Commission decision about the price ISPs pay Chorus for using its network has been welcomed by CallPlus and Slingshot CEO Mark Callander – and he is now calling for the government to step back from the “Copper Tax”.

“As far as CallPlus and Slingshot is concerned the Commerce Commission has done its job and now the Government should not intervene any further. Kiwis will benefit from these savings, Slingshot has already made a commitment that it will pass through savings to consumers,” says Mr Callander.

The Commission’s determination on the price Chorus charge retailers such as Slingshot on its copper phone line network will be $34.44 – a figure made up of two price components of $23.52 for Unbundled Copper Local Loop (UCLL) and $10.92 for Unbundled Bitstream Access (UBA)

The UBA price of $10.92 is higher than the Commission’s initial draft price of $8.93 proposed in December last year.

While Mr Callander is pleased with the new UBA price he is very concerned that this still won't satisfy Communications Minister Amy Adams, and that she will push ahead with a levy on copper broadband pricing. 

The final figure of $34.44 is still $3.06 below the low end of Adams target of between $37.50 and $42.50.

The controversial proposed levy, which has been widely criticised by ISP’s including Slingshot, Orcon and Vodafone because of the impact it would have on consumers, has been viewed as a “tax” on broadband customers with an estimated $979 million cash windfall for Chorus, based on the initial price.

The levy has also been touted by the government as a way of supporting Chorus’ expensive rollout of the fibre network.

Mr Callander says CallPlus and Slingshot are strong supporters of UFB and the fibre network but research shows the copper-based system will be the key delivery method of broadband through to 2020 and beyond.

“Even the more optimistic commentators forecast that at the end of 2019 the majority of kiwis will still be on copper not fibre,” he says.

Mr Callander says the notion of Chorus going broke if the levy is not put in place to safeguard the company during the expensive fibre roll out is unfounded.

“The ‘Axe the Tax’ campaign, of which CallPlus and Slingshot are supporters, has shown claims that Chorus will be insolvent are not supported by any evidence. Chorus is a very profitable company that paid $95 million in dividends to its shareholders last year. The company will remain profitable with or without the copper tax.”

“The government have said it wants to remove uncertainty so now it’s time to move on. We hope that the minister will not intervene and will undertake a review of the Telecommunications Act in 2016 in line with the current timeframe when the real issues with respect to the UFB rollout should be clearer.”

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Patience: Drive Safe

Be patient before passing is the AA's message for drivers this Labour weekend.

"People taking crazy risks to get past other vehicles is one of the most dangerous things on the road,” says AA spokesperson Dylan Thomsen.

“The weather is looking good for the long weekend so the roads will be busy. Unfortunately, that also increases the chances of people getting frustrated and trying a risky passing manoeuvre. When they get past, there will probably be more traffic up ahead anyway so it won’t get people there faster.” More>>

 
 

Parliament Today:

Employment Relations Bill: Govt Strains To Get Tea Break Law Through

The Government has been left with egg on its face - failing to get its much-vaunted, but hugely unpopular, meal break law passed in the first week of its new term, Labour spokesperson on Labour Issues Andrew Little says. More>>

ALSO:

Guns: Police Association Call To Arm Police Full Time

"The new minister gave his view, that Police do not need to be armed, while standing on the forecourt of parliament. The dark irony was that the interview followed immediately after breaking news of a gunman running amok in the Canadian parliament in Ottawa..." More>>

ALSO:

Gordon Campbell: On The Tokenism Of New Zealand's Role Against Islamic State

Our contribution against IS will be to send SAS forces to train the Iraqis? That’s like offering trainers to General Custer just as the 7th cavalry reached the Little Big Horn. More>>

ALSO:

Scoop Business: Shell And Todd Caught Drilling Without Approval

Multi-national oil company Shell’s New Zealand arm and local energy giant Todd Energy have breached the new law governing New Zealand’s Exclusive Economic Zone, the Environmental Protection Authority says in an Oct. 10 document released by the Green Party. More>>

ALSO:

Gordon Campbell: On Pharmac, Gough Whitlam And Sleater-Kinney

We’re not at the outset of these negotiations. The outset was six years ago, and negotiators were hoping to have some sort of ‘framework’ deal finished in time for the APEC meeting in a few weeks’ time. These ‘extreme’ positions are what we’ve reached near the intended end of the negotiations… More>>

ALSO:

PM Of Many Hats: Questions, No Answers On Whale Oil

Dr RUSSEL NORMAN (Co-Leader – Green) to the Prime Minister: How many times since November 2008 has he spoken with blogger Cameron Slater on the phone and how many times, if any, has he texted him?
Rt Hon JOHN KEY (Prime Minister): None in my capacity as Prime Minister. More>>

ALSO:

Aussie Investigation Dropped: Call On Minister McCully To Pursue The Case Of Balibo Five

West Papua Action is deeply concerned at the lack of any clear outcome from the Australian Federal Police inquiry into the 1975 deaths of the ‘Balibo Five’ including NZ journalist Gary Cunningham. More>>

ALSO:

'Feed The Kids' Bill: Metiria Turei To Lead Fight On Feeding Hungry Children

Green Party Co-leader Metiria Turei is urging all political parties to support the Feed the Kids Bill which she inherited today from Mana leader Hone Harawira. More>>

ALSO:

Parliament Today: State Opening Of Parliament

The House sat at 10.30am on Tuesday before MPs were summoned to hear the Speech from the Throne in the Legislative Council Chamber. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news