The move by Telecom to lower prices was always going to happen once the Chorus split happened. Why? Because wholesale UBA and EUBA pricing was calculated using a retail minus figure, based only on Telecom Retail's retail internet plans. This was an exceptionally flawed model that delivered a bad outcome for consumers.
I've said it for years and I'll say it again. the Commerce Commission have been responsible for ripping off NZers for the last ~5 years with wholesale internet pricing in NZ.
The Commerce Commission are now moving to a cost plus pricing model from 2014 which is controversially looking to slash wholesale prices considerably. Regardless of whether you agree with the deep price cut or not, the reality is a cost plus model is where we should have always been.
It's also worth noting that UFB wholesale prices aren't set in stone, from 2014 to 2019 most plans have yearly movement in the prices. Low end plans will all yearly over this period, with high end and P2P plans seeing significant price drops over this period.
It will also be interesting to see what Chorus do with VDSL wholesale pricing since this is a commercial, and not a regulated offering. As regulated UBA/EUBA offerings fall Chorus need to decide whether they maintain the $20 price premium or alter this.
I still see a big future for VDSL2, but it just has the problem of not being scalable to a mass market solution because of the mentality of the average NZ internet user who wants everything for free and seems unwilling to pay for a modem, and unwilling to pay to have the wirining in their house sorted to ensure ADSL2+ and VDSL2 are capable of working correctly. You don't expect your big box retailer to send around a plumber for free to hook up new pipes for your new dishwasher, or a technician to adjust your aerial and cabling for Freeview, but somehow many people expect their ISP to be responsible for fixing their internal wiring in their home for free which is their own property.