Chorus opposes reducing local loop costs
Fri, 04 May 2012 10:53a.m.
Telecommunications network operator Chorus is warning that cheaper access to ageing copper lines may discourage buy-in for the fibre network under construction.
In a draft determination, the Commerce Commission indicated it wants to reduce the geographically averaged unbundled copper local loop (UCLL) service to $19.75 a month from its current price of $24.46 over two years.
UCLL lets Chorus's competitors use the copper network between an exchange and customer premises to offer their own voice and broadband services.
Chorus says the draft decision, if ratified, would impact on about 6 per cent of its copper-based access services, based on current volumes, and foreshadows more regulator intervention.
"Chorus is disappointed that this creates uncertainty for investors and industry," the company said in a statement.
"At a time when New Zealand is making a very significant investment in building a fibre world, Chorus is concerned that the commission's draft decision creates a potential disincentive for retail service providers and end customers to transition to fibre services."
Wholesale prices for access to the copper lines were averaged as a result of legislation enabling Telecom to carve out its Chorus unit last year, something that rankled with rival telecommunications companies who claimed it would lift their costs.
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5/05/2012 4:14:52 p.m.
The easiest way to bring these clowns to their knees is for the consumer to reject the UFB.
4/05/2012 1:07:21 p.m.
Calvin Green wrote:
Chorus is acting in the same monopolistic manner that its twin, Telecom, has done for years. Shut out the competition at any price. We recently had an active telephone number changed from one house to another house on the same property and was charged over $500 by Chorus!!! It would have taken at most 20 minutes - that was for connecting the number only - we paid for the line installation. The service was managed by Telecom. They still mucked it up. The government has to start working on behalf of the consumers rather than protecting monopolistic behaviour by large corporates with disconnected investors.
4/05/2012 11:10:48 a.m.
There you go - higher fees are actually good for the customer. More BS spin from the telcos.
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