Phone Line And Internet Price Rise Proposal

December 19, 2014 10:55 pm

The Commerce Commission is consulting on proposals to increase wholesale prices for phone and internet services delivered along Chorus’ copper network.

Rural Women response

Rural Women is preparing a submission to communicate the effect an increase in wholesale prices would have on our rural communities. Your help completing our survey will assist us in undertaking an assessment of the full rural impact of the proposed changes. Link to Survey. Survey responses are required by Friday 30 January 2015.

 

more information

Wholesale prices are the amount that Chorus can charge retail telecommunication companies (like Spark, Vodafone, Orcon, Slingshot, and Flip) for use of their local copper lines and broadband service.  While the Commission’s proposed prices have yet to be finalised, a number of retailers have responded with plans to increase retail prices for phone and internet services.

 

For example, Spark has said that on 1 February 2015:

-the monthly price for a home phone only line in rural areas will increase from $51 to $53.50

-the monthly price for an entry level Broadband and home phone plan (40GB) will increase from $75 to $79.

 

Why is the Commission suggesting that wholesale prices should increase?

The Commission is required by the Telecommunications Act 1993 to regulate the price that Chorus can charge for access to its copper network. The Commission’s current review of wholesale prices has been ongoing since 2011.

 

The latest set of wholesale prices proposed by the Commission are based on sections of the Act that require it to calculate what it would cost Chorus to build an equivalent network today.

Categorised in: ,