High Court rules in favour of Commerce Commission

April 9th, 2014 at 4:00 pm by David Farrar

Stuff reports:

A consumer group has welcomed a High Court ruling on copper prices, saying it should eventually deliver lower prices for telecommunications users.

The court said today that Chorus had lost its challenge over cuts to copper broadband prices by the .

This is not a surprise.

The commission had decided Chorus could charge only $10.92 a month for copper broadband connections, down from $21.96.

Brislen said lower prices were not expected soon as a drawn-out process to establish final prices for the sector was continuing.

Not as drawn out as it could be. A final price may be set by year end.

In a judgment released today, Justice Stephen Kos rejected Chorus’ appeal.

“The simple fact is that the commission did not accept Chorus’ submissions,” he said.

“Despite the combined intelligence and force with which Chorus’ submissions were delivered, I am left unpersuaded that the commission erred in law.

“In my view, submitters were plainly aware that a price point above the confines of a more limited benchmark range was a possibility. The commission, in my view, was also open to that possibility.

“In my view, the commission has done just as Parliament had prescribed.”

This is a key point. Parliament passed the law. The job of the Commerce Commission is to interpret and implement it. Those who don’t like the outcome shouldn’t have attacked the Commerce Commission for just doing their job.

4 Responses to “High Court rules in favour of Commerce Commission”

  1. OneTrack (4,602 comments) says:

    “saying it should eventually deliver lower prices for telecommunications users”

    Meanwhile, back in the real world, OneTrack is having to get used to the idea that there is now only the existing ADSL2 in the foreseeable future.

    Thanks Com-Com. (not)

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  2. James Stephenson (3,056 comments) says:

    It’s a bit more complex than that onetrack, roll-out of VDSL2 is needed to build a big enough high-speed connected market to make it worthwhile developing the applications that will ultimately drive the profitability of FTTH…Chorus cross-subsidising the two Access technologies wasn’t some ridiculous exercise in gouging anybody.

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  3. lastmanstanding (1,734 comments) says:

    As an investor in Chorus who else is going to build the network for free no income no return on investment. The so called consumer groups are no more than corporate welfare bludgers. they expect me to invest and pay for their UFB for NOTHING no return.
    Time the Com Com got real. using 2 countries that have no comparison with NZ to set the price is a joke just like the Com Com. Academic that he is and out of touch with all and any commercial reality.
    Time the government replaced him with a person who understands how markets work how economys work and who doesnt hide behind the Im only doing my job excuse.

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  4. lastmanstanding (1,734 comments) says:

    BTW all of you are in kiwisaver funds unless a cash only property only or offshore invested only you are all shareholders in Chorus because your fund manager owns CH shares on your behalf.
    So dis the company all you will. You are dissing your OWN investment.
    Didn’t think of that now did you.

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