Don’t subsidise fibre with copper
December 4th, 2012 at 11:00 am by David FarrarStuff reports:
The price of broadband could fall by about $12 a month in two years’ time if internet providers pass on swinging cuts to Chorus’ charges that were proposed yesterday by the Commerce Commission.
Good.
But Scott Bartlett, the boss of New Zealand’s fourth largest internet provider, Orcon, is doubtful. He said Telecommunications Commissioner Stephen Gale already seemed to be signalling “almost in code” that the commission would back down from the steep cuts when it finalised its decision on wholesale pricing in June.
Prime Minister John Key signalled that the Government was concerned about the effect cheaper copper-based broadband could have on the fibre-optic ultrafast broadband network, in which the Government has agreed to invest $1.3 billion.
He did not rule out using legislation to overturn the proposed price cut yesterday.
I think that would be a bad thing. The Commerce Commission should be left alone to set the price of copper access based on existing competition law. I’m a huge fan of the fibre rollout, but we shouldn’t try and get people to move to fibre by having copper priced artificially high.
Tags: broadband, Commerce Commission, fibre
December 4th, 2012 at 11:08 am
Why not….. fibre is the future and the faster it is taken up the more services will be offered, have fibre in front of everyone’s gate but having people clinging onto copper is a strategically bad move……
One possible alternative is to allow Chorus to turn off copper service at a certain point in time ( the Government did it with Digital TV), to promote Fibre Take up
Also Chorus are funding a large chunk of the roll out ( presumably with existing profits), if you reduce that money, then they will expect the government to increase its funding…..
Vote:December 4th, 2012 at 11:14 am
I believe they are “swingeing” cuts…but hey, who cares about spelling other than crusty old farts?
Vote:December 4th, 2012 at 11:20 am
Jeez – whats wrong with these bums. Dont they know that rule that says something like – “the speed doubles every x months, or the price is cut in half every x months”
Surely they knew when this whole thing was set up that prices will be a lot less when its up and running than it was when they started.
Vote:December 4th, 2012 at 11:49 am
We can’t have anything interfere with the ‘Great Fibre Leap Forward’. If the market won’t comply, we must use the government to implement our infallible and superior plans.
Vote:December 4th, 2012 at 12:18 pm
Dime has fibre. Its a tocuh quicker than adsl2. costs more. Dime’s thrilled.
Vote:December 4th, 2012 at 12:52 pm
DPF: I’m a huge fan of the fibre rollout, but we shouldn’t try and get people to move to fibre by having copper priced artificially high.
One government department fighting with another. Law of unintended consequences, and all that.
John Key is no Bestiat, but we already knew that.
Another National failure trying to outsocialist the socialist.
And that same party is berating Labour for wanting to built 100,000 houses.
Vote:December 4th, 2012 at 12:52 pm
Sonny Blount +1
Vote:December 4th, 2012 at 2:04 pm
David Garrett notes:
Well this crusty old fart just about had apoplexy when he read that. I got a mental image of Chorus executives swinging from the ropes, Pirates-of-the-Caribbean-like, wielding cutlasses.
Stuff seems to have replaced the story DPF quoted with one that’s markedly different – calling Scott Bartlett “Kordia New Zealand chief executive” rather than “Orcon boss” for instance.
That seems to be the new paradigm in news coverage – throw up any old mess, then sub-edit at leisure. Meanwhile a good portion of your readership have absorbed the wrong information.
Vote:December 4th, 2012 at 7:17 pm
Scott was Orcon boss and is now Korida NZ Chief Executive with Orcon being folded into Kordia – try and keep up Rex.
Anyway, good to see DPF not afraid to criticise Key on this issue.
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