Cheaper copper

May 5th, 2012 at 12:41 pm by David Farrar

The Herald reports:

In a draft determination, the Commerce Commission indicated it wants to reduce the geographically averaged unbundled copper local loop (UCLL) service to $19.75 a month from its current price of $24.46 over two years.

UCLL lets ’s competitors use the copper network between an exchange and an end-customer’s premise to offer their own voice and services. The current urban price only has to come down $19.81, and the biggest access gains would be in non-urban areas, which are sitting at $36.63. …

Wholesale prices for access to the copper lines were averaged as a result of legislation enabling Telecom to carve out its Chorus unit last year, something that rankled with rival telecommunications companies who claimed it would lift their costs. The de-averaged urban and non-urban prices are $15.82 and $29.19 respectively, the regulator said.

It is a pity the Government decided to require an averaged price, as it means urban users are subsidising rural users. Instead of urban users getting a wholesale price drop of $3.99 and rural of $7.44 the drops are $0.06 for urban and $16.88 for rural.

But still good to see overall wholesale prices heading in the right direction.

Tags: ,

10 Responses to “Cheaper copper”

  1. rosscalverley (83 comments) says:

    And it’s not as if dairy farmers don’t subside the economic performance of the country.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  2. krazykiwi (9,186 comments) says:

    It is a pity the Government decided to require an averaged price

    No, It is a pity the Government decided to set any price

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  3. George Patton (348 comments) says:

    yeah, it only wiped out $100 million of Chorus’ value.

    Great going Commerce Commission, imagine what they’ll do for the upcoming SOE floats.

    [DPF: I am a chorus shareholder myself but monopoly utilities always have price regulation, where it is uneconomic to have infrastructure competition]

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  4. Minnie (98 comments) says:

    And heres me thinking from the headline they’d found a way to make NZ Police a bit more efficient.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  5. George Patton (348 comments) says:

    Yeah but DPF, it was $100 million dollars that got wiped off Chorus.

    I’d also helpfully point out that a government agency is forcing down copper-wire pricing to make it more attractive to consumers at the same time the government is spending $1.5 billion of our money to move people to ultrafast fibre based broadband. Sounds like good government, no?

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  6. swan (665 comments) says:

    Cross subsidisation eh.

    F*** I hate this government. They care not a bit about basic economics. That much has been made clear to us over the last few years.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  7. Johnboy (16,092 comments) says:

    Yellow bananas are as good as gone. Blue bananas are in vogue. Red/Green bananas are becoming more fashionable I hear.

    Whatever colour we squabble over, we are still just a little, tiny, ineffectual, fucking banana republic that no one in the real world gives a shit about.

    I wish all you pseudo-intellectual political junkies would get a life and start to realise the reality of this! :)

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  8. gazzmaniac (2,307 comments) says:

    Why not just deregulate Chorus entirely?
    Without regulation, Chorus will be required to be competitive or run the risk of another company setting up a wired network (like Saturn in Wellington) or a mobile company coming out with a fast 4G network in direct competition with (and lower overheads than) the wired incumbent.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  9. Johnboy (16,092 comments) says:

    Imagine what the bloody tossers that ran Telecom paid the bloody wankers at the ad agency to come up with the bloody stupid name “Chorus”?

    Fuck we all live in a bloody dream world here in Godzone.

    The seriously important multiple CEO’s of our once Electricity Department are a bloody good example of cost plus circle jerking.

    All in a village of 4.4 million inbreeds too! :)

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  10. Falafulu Fisi (2,179 comments) says:

    KK…

    No, It is a pity the Government decided to set any price

    Spot on. If Hugo Chavez knows that the John Key’s socialist National government is setting prices in the market, he will ring the prime minister to congratulate him. Chavez : Good work Comrade Key!

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote

Leave a Reply

You must be logged in to post a comment.