Commerce Commision causes copper uncertainty

Commerce Commision causes copper uncertainty

InternetNZ is displeased that today’s announcement of a draft final pricing principle for copper broadband hasn’t provided the certainty the industry needs.

While disappointed that the price has come out higher than the amount set by the Commerce Commission earlier this year, InternetNZ respects the importance of a free and independent body making these decisions.

InternetNZ CEO Jordan Carter said that what the industry most needed at this point in time was certainty over the pricing and with the Commission’s refusal to make a position clear on backdating we have not got that.

“We’ve had a legal opinion that suggests that backdating should not be put in place. We don’t understand why the Commerce Commission didn’t take the opportunity to provide certainty when that is what every part of the industry has called out for.

“What the Commission has done is release a stack of documentation and asked organisations to digest a lot and make comment on in a very short span of time. We’re grateful that the Commission says that it will consider requests for extensions and we hope that isn’t an idle offer.

“From our perspective, it’s important that we get this process right, not rushed.”

InternetNZ is also worried about the disincentive to unbundling that the latest figures provide. Unbundling is important to providing competition in the industry, most broadband users are still using copper. This reduces competition in that space.

InternetNZ will now focus on working its way through the very detailed documents and may have further comment in coming days.

ENDS

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