Telecom new connection price rise concern
Economic, Industry and Regional Development Minister Jim Anderton is deeply concerned about the potential impact of
Telecom’s increase in prices for new residential connections in regional New Zealand.
“I am deeply concerned about the potential social and economic development impacts on rural communities of these
charges. My colleague, the Minister of Communications, Hon Paul Swain, is also aware of this issue and we have asked the
Ministry of Economic Development to investigate further, particularly in light of the Kiwishare, and respond urgently to
us.”
“We are working on the obligations imposed by the Kiwishare and I will meet with Telecom to discuss this issue and look
for solutions that might help regional New Zealand,” said Jim Anderton.
New connections have gone from a flat rate of $61 regardless of where the connection is, to $95 in urban areas (75 per
cent of connections), $250 in medium density areas and price on application in very hard to reach areas. Telecom will
pay two thirds of the cost and the consumer will pay the rest.
There have been reports that in some rural areas such as Karamea on the West Coast of the South Island a new connection
will cost up to $1500.