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

 

Chorus, Spark won't appeal final pricing for copper network

No appeal from Chorus or Spark on final pricing for copper network

By Pattrick Smellie

Jan. 28 (BusinessDesk) - Telecommunications network operator Chorus and retailer Spark New Zealand will not lodge appeals against the Commerce Commission's final decision on pricing for access to the ageing copper network, which is progressively being replaced by fibre-optic cable.

Chorus was judged the winner in the competition regulator's final decision, just before Christmas, in a long-running process to determine the price at which Chorus could offer competing telcos access to its copper network, with a leap in its share price and its credit rating placed on notice for upgrade.

The country's largest retail provider of fixed-line services, Spark New Zealand, raised its prices in response and confirmed to BusinessDesk this morning after the Chorus announcement that it too would not appeal the outcome of a process that one investor described as "a regulatory debacle" that created a rollercoaster ride for listed telecommunications companies in recent years.

"We hope all other parties accept this decision without appeals so that we can move forward as an industry - we have no intention of appealing, unless someone else does, which would force us to participate in an appeal process," a Spark spokesman said in an email to BusinessDesk.

The deadline for appeals is Feb. 3.

Chorus chairman Patrick Strange said in a statement: “After full consideration of all facets of the final determination, the Chorus board has elected not to appeal the decision, despite disagreeing with some key elements such as the lack of backdating.”

“While we are aware that some investors feel there may be merit in further testing aspects of the determination in court, it is the strong view of the board and management that the best long-term value for our shareholders and customers will be achieved through the industry focusing on bringing New Zealand better broadband.

“We do not believe this can be achieved in an environment of continued regulatory uncertainty and appeal. We hope all other industry participants also elect to put this difficult phase behind us, and focus on working together to deliver value to New Zealanders."

However, if other parties appeal, Chorus was likely to cross-appeal, Strange said.

Chorus would now focus on the government's review of the Telecommunications Act 2001, occurring this year, in pursuit of "a more stable and predictable framework."

"We must not repeat the major market distortions of the last four years."

Spark said: "It’s a pragmatic decision from Chorus and we think it’s the right thing to do. It’s a big step closer to the industry being able to draw a line under this long-running process."

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Statistics: Annual Inflation Hits A Three-decade High At 5.9 Percent
The consumers price index increased 5.9 percent from the December 2020 quarter to the December 2021 quarter, the biggest movement since a 7.6 percent annual increase in the year to the June 1990 quarter, Stats NZ said today... More>>



Digitl: Bumper year ahead for NZ IT sector

Gartner says New Zealand spending on technology products and services will grow 7.4 percent this year. The company’s latest forecast says the market will total NZ$15.3 billion in 2022... More>>



Fonterra: Lifts Forecast Farmgate Milk Price Range

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range to NZD $8.90 - $9.50 per kgMS, up from NZD $8.40 - $9.00 per kgMS. This increases the midpoint of the range, which farmers are paid off... More>>



Skoltech: Study Probes Earth’s Turbulent Past To Explain Where Oceans Came From

The origin of water on our planet is a hot question: Water has immense implications for plate tectonics, climate, the origin of life on Earth, and potential habitability of other Earth-like planets. In a recent study in Physical Review Letters, a Skoltech professor and his Chinese colleagues suggest... More>>


Statistics: Household Net Worth Grows In The September 2021 Quarter But At A Slower Pace Compared To March 2021

Household net worth grew by $60.7 billion in the September 2021 quarter compared with the June 2021 quarter, Stats NZ said today. This represents an increase of 2.5 percent, a similar result to the June 2021 quarter, which was up $60.6 billion or 2.6 percent... More>>

TradeMe: Job Market Ends 2021 On A High With Record Number Of Vacancies
The New Zealand job market finished 2021 on a high note, with the ball still firmly in the job hunters’ court, according to the analysis of 69,600 vacancies listed on Trade Me Jobs for the quarter ending 31 December (Q4)... More>>