Broadband Prices
It’s great that Telecom is reducing its retail prices for broadband, but to not reduce the wholesale prices also may breach the Commerce Act because if the retail price drops below its wholesale price this makes it impossible for any other ISP to compete.
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Tags: Internet
September 22nd, 2006 at 3:25 pm
Your argument applies to every wholesaler-retailer relationship of what-ever products in the country.
September 22nd, 2006 at 4:24 pm
Yes Baxter you are correct, but in this case Telecom controls the only telecommunications infrastructure that is capable of providing nationwide broadband access. In addition, Telecom has agreed to follow the BT model where its wholesale arm treats the Telecom retail arm the same as it does all retail broadband suppliers.
I know all the arguments for & against the whole unbundling thing and don’t need to debate it further, but if Telecom is serious about competing on an equal basis with its broadband competitors (now there’s a Tui billboard) this isn’t a good look.
September 22nd, 2006 at 4:38 pm
Can they really be this stupid? What is it with Telecom? Why do they think they can try this stuff?
September 22nd, 2006 at 4:41 pm
Live somewhere civilised, like where there is a cable to plug in. It’s real fast and it costs no more than Telecom dial up.