Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.
Independent review finds Covec conservative on Chorus transfers
Posted on 30-Sep-2013 14:32 by Bill Bennett. | Tags Filed under: News.



An independent peer review says Covec’s estimate of the amount Chorus stands to gain from the government proposed changes to copper pricing is “conservative in all scenarios”.

Vodafone commissioned telecommunications consultants Network Strategies to review the earlier report after Communications Minister Amy Adams accused the Coalition for Fair Internet Pricing of misleading claims. At the time Adams said coalition claims were “hyperbole and scare tactics based on fiction”.

Fundamentally flawed

Separately Prime Minister John Key said the Covec report was “fundamentally flawed”. This is directly contradicted in the review where Network Strategies describes Covec’s fundamental logic as ‘sound’.

Earlier the Coalition launched a campaign against the proposed changes using figures from the Covec report. Its key finding is an estimate changing the price of copper broadband will cost NZ consumers and businesses an additional $600 million.

Before the government stepped in, the Commerce Commission ruled that the price of a copper broadband connection should fall by up to 20 percent.

Although this was flagged at the time Chorus demerged from Telecom NZ, the company charged with building most of of the government’s ultrafast broadband network has lobbied for that price cut to reduced.

The Coalition says that money will go to Chorus and is effectively a transfer directly to Chorus shareholders. Vodafone has also made a similar point.

Wide ranging opposition

The Coalition for Fair Internet Pricing brings together carriers, Tuanz, InternetNZ, consumer advocacy groups and others. Significantly Vodafone is not a member. And interestingly from a political point of view the group’s members range across the political spectrum including prominent National Party supports and trade unions.

In the report’s summary Network Strategies writes:

We found the assumptions that Covec has applied are relatively conservative, and as such the Covec results would tend to be an underestimate of the transfers to Chorus.

It says the amount Chorus will receive will grow higher the longer customers keep copper connections. Covec assumes 45 percent of households will transfer to fibre by 2020 – a figure much higher than the 20 percent in the Chorus contract.




comments powered by Disqus




Trending now »

Hot discussions in our forums right now:

NZ Prime Minister John Key Resigns
Created by ajobbins, last reply by Linuxluver on 8-Dec-2016 09:24 (194 replies)
Pages... 11 12 13


The President Of The USA - Who do you think?
Created by TimA, last reply by Sideface on 8-Dec-2016 08:34 (905 replies)
Pages... 59 60 61


Dishwasher not Working Properly
Created by tdgeek, last reply by mdav056 on 5-Dec-2016 20:18 (28 replies)
Pages... 2


Spark not planning to deploy native IPv6 at all. Ever.
Created by Erayd, last reply by sbiddle on 7-Dec-2016 20:57 (19 replies)
Pages... 2


'Quality' NZ news on the way?
Created by Rikkitic, last reply by alasta on 4-Dec-2016 09:49 (91 replies)
Pages... 5 6 7


Wilson's Car Park - When Free is not free
Created by nzkiwiman, last reply by networkn on 8-Dec-2016 09:08 (35 replies)
Pages... 2 3


JB Hifi Cost & GST Sale - 7th Dec
Created by Finch, last reply by Kopkiwi on 7-Dec-2016 15:11 (16 replies)
Pages... 2


Japan - what to do, where to go etc
Created by nzkiwiman, last reply by nas on 6-Dec-2016 21:21 (16 replies)
Pages... 2