LLU price range

The Dom Post predicts the Commerce Commission is going to set the LLU access price at between $20 and $30.  This is a nonsense range to predict (and interesting their headline does not match their story).

We already have a price for unbundled bitstream access (which means ISPs use Telecom’s Dslams rather than install their owns) of $26.35. Any price greater than that would be an economic nonsense saying it costs more to not use Telecom’s equipment than it does to use it.

LLU will be uneconomic for many if the price is not $25 or below. On the other hand if it is below $20 then there could be concerns that this is not enough to of a return on capital for Telecom Networks to invest.

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