Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Local Loop Prices Disappoint

Local Loop Prices Disappoint

Media Release – 7 November, 2007

InternetNZ (the Internet Society of New Zealand Inc) is disappointed at final local loop access charges, released today in a Commerce Commission determination.

The wholesale price for competing operators to access Telecom exchanges in urban areas has been set at $19.84 - up 20 per cent from $16.49 in a draft determination earlier this year. The price in non-urban areas is $36.63, an increase of 14 per cent from the draft price of $32.20.

InternetNZ Public Policy Committee Chair David Farrar says a drift upwards of such magnitude was not expected by the industry and is likely to have flow on effects.

“These prices are not insignificant and are more than we expected. It will ultimately mean tighter margins for competing LLU operators.”

The determination however means ISPs can now make final investment decisions. “It will encourage people to take advantage of the opportunities LLU provides and will, in theory, mean more money for the network division of Telecom to roll out fibre,” says Farrar.

InternetNZ is pleased that the Commission has retained the concept of de-averaged pricing in its final determination.

“Such a pricing structure is likely to lead to a greater investment in urban LLU than would have been the case with national pricing, and won’t significantly diminish non-urban investment,” Farrar notes.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>


Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>