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.
NZN