Strange things started to happen rather quickly. Not enough subscribers were keen to switch to the more expensive connection, so Chorus raised the price of copper connections to $45 a month to make fibre more attractive.
An organisation of users protested. The Commerce Commission, which can regulate network pricing, stepped in and forced Chorus to lower its copper charge to $32.45. At that, Chorus appealed and the commission has spent the past three years reviewing its calculations.
The following Wednesday their editorial back downs:
Last Friday, our editorial expressed concern that the charge being set for telecommunications on the copper network was being artificially inflated to make the Government-inspired roll-out of fibre optic cable more competitive.
That view has been strongly contested and we need to reconsider a number of issues. Few costs in an economy are more important than the price of its vital infrastructure.
Chorus, the network provider, does not set its own charges. They are done entirely by the Commerce Commission. We have been assured the charge determined by the commission last week has nothing to do with the cost of fibre connections, the uptake of which is at 16.4 per cent of customers served so far.
Kudos to the Herald for admitting they got it wrong. Not so good they did an editorial in the first place they was so poorly researched.