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

Pre-Caucus Audio:
David Cunliffe And
The Future Of The
Labour Party

David Cunliffe met with the press today after Saturday’s disappointing election result for The Labour Party.

“We are all deeply concerned by the result of our party vote. I want to be clear that I, as leader, am responsible for that result” Cunliffe said. Although he called the results “deeply disappointing” Cunliffe said “the voters are always right”.

He felt that Labour needed to make improvements and take action: “We don’t need months to get feedback from members of the public, we've had a lot over the past 48 hours”. More>>

 

Gordon Campbell: On Labour’s Very Bad Year

While Labour leader David Cunliffe still appears to be in denial about the extent of Saturday night’s debacle, there was hardly a single redeeming feature about the election results for the centre-left... More>>

ALSO:

General Election NZ: National Win

Election Night: With almost all votes counted National and John Key have won a third term and are close to being able to govern alone if they so choose. Key has indicated he will still reach out to form a Government with ACT, United Future and Maori Party. More>>

ALSO:

Perfectly-Timed Anniversaries: Suffrage Day Is Last Chance To Enrol

“The last chance to enrol is Friday 19 September. You can’t enrol on election day.” More>>

ALSO:

Gordon Campbell: On First Time Voting (Greens)

For the last two days, I’ve turned my column over to a couple of guest columnists who are first time voters… Today’s guest columnist is Ana Avia-O’Connor, who will be casting her first time vote on Saturday for the Greens. More>>

ALSO:

Meddling: Aussie Liberals Embroiled In Key Campaign

John Key needs to explain why Australia’s Liberal Party is interfering in New Zealand domestic politics and is encouraging Kiwi voters across the ditch to vote for National just days out from the election, Labour’s campaign spokesperson Annette King says. More>>

ALSO:

SURVEILLANCE:

Election Ad Soundtrack: Rapper Eminem Sues National Party Over Copyright Breach

US rapper Eminem is suing the New Zealand National Party for alleged copyright infringement over unauthorised use of the rapper’s ‘Lose Yourself’ song in an election campaign advertisement. More>>

ALSO:

Big March: Call For An End To Domestic Violence

Hundreds of protesters marched down Lambton Quay to Parliament Monday calling for an end to domestic violence. Wearing white facemasks, waving banners and calling for “safety” for the women and children of New Zealand.. More>>

ALSO:

Pre-Election Chartering: Four New Partnership Schools To Open

Education Minister Hekia Parata today announced the Government has signed contracts to open four new Partnership Schools in 2015. More>>

ALSO:

Werewolf 50 Out Now - The Election Issue: Loss Leaders

Gordon Campbell: A third term requires a mature decision, with eyes wide open. It calls for a conscious vote of confidence… Without trying hard here are about 19 reasons, in no particular order, for not ticking ‘party vote’ National. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news