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Price questions over Pacific Fibre failure


Clare
CURRAN
Communications and IT Spokesperson
3 August 2012 MEDIA STATEMENT
Price questions over Pacific Fibre failure

Amy Adams must show how the cost of ultra-fast broadband will come down now that the collapse of Pacific Fibre has ruled out international competition, says Labour’s Communications spokesperson Clare Curran.

“Ultra-fast broadband could be a great boost to families and businesses but only if the price is right. Pacific Fibre’s failure to get investment ensures there’s no real prospect of international competition, despite the Government’s hopes, and that means the retail price is likely to be high.

“The Government appears to have put the cart before the horse here. Surely the Government should have ensured the international connections were competitive, then started ‘last mile’ work. It’s like they are building a gleaming eight-lane highway with only a metal road leading onto it.

“In 2019 we may well have a beautiful ultra-fast fibre network but no competition for internet traffic, meaning prices could be too much for customers. It could look like a massive motorway with no cars on it.

“Amy Adams needs to explain how prices will be affordable in seven years without competition.”


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