Next steps in the Copper Pricing process - We are disappointed

Today the Commerce Commission released their next decision in the copper pricing process - the draft final pricing principal decision.  Included in the 900 pages of documentation is the simple outcome of the Copper Line price (that is an unbundled line with no services attached) to rise from their initial price by $4.70 and the price of the Broadband service uplift on that is reduced by 75c.  This is still a reduction over the amount Chorus has been allowed to charge up to yesterday but not as much as we had seen in the Initial price decision.  There is significant detail to be worked through and we now enter into a period where we will work on making a submission on this draft due late January (at this point).  In the meantime we have made the following press release:

PRESS RELEASE - TUANZ

TUANZ finds new uncertainty for broadband users disappointing

The Commerce Commission draft decision on wholesale copper charges this morning has introduced new uncertainty for users of broadband services by proposing a $4 increase from their interim decision.  Users have already seen the benefit of lower prices flowing through as a result of this process and improved competition.  TUANZ expected that yesterday’s implementation of the interim prices would further reduce prices. This may now be reversed in April next year when the final price applies.  

 

TUANZ is also concerned that the Commission has chosen not to make a formal statement on backdating at this point until they release a discussion paper on the issue.

 

The detail around these numbers is complex and detailed and TUANZ CEO Craig Young is concerned that the time for organisations to submit on the decision is limited.  

 

“We will endeavour to submit as quickly as possible to fit in with the Commission’s timelines, however we certainly don’t want to be hasty,” said Mr Young.

 

“We will continue to participate fully in this process, always speaking for the end-users of these services.  Our concern has always been over ensuring a fair and competitive market which is sustainable and continues to provide world class services to New Zealanders at fair prices.”  

 

ENDS