InternetNZ questions Telecom's retail tactics
Media Release
21 September 2006
InternetNZ (The Internet Society of New Zealand) is concerned at the competitive implications in media reports this week
of Telecom's broadband pricing tactics.
The media reports suggest Telecom's planned unconstrained retail broadband pricing plans will not be able to be matched
by ISPs through UBS without making a significant loss on the services, as UBS charges will be too high relative to the
Xtra broadband retail charges.
With ISPs dependent upon an historically based wholesale price in a market where retail broadband prices are decreasing
Telecom has an advantage in attracting new broadband customers, and in attracting customers off other ISPs, through
tactics of lowering pricing.
“If the reports are true, this would appear to be counter to the Government-led process under way to ensure a more
competitive market for broadband,” says InternetNZ executive director Keith Davidson.
“If Telecom is taking advantage of this situation this would not be in keeping with Telecom executive's comments that
they 'Get it' and are now aligned with the Government's direction. It would also bring into question Telecom's
seriousness towards providing “Equivalence of Inputs” to wholesale customers.”
InternetNZ has proposed that both Telecom's network and wholesale divisions be operationally separated so that all ISPs,
including Xtra, are transparently treated on an equal basis.
ENDS