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: Articles



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:

iPhone 8/iPhone X, impressions?
Created by surfisup1000, last reply by Dial111 on 20-Sep-2017 06:09 (296 replies)
Pages... 18 19 20


Auckland Airport fuel supply obliterated by digger
Created by Batman, last reply by k1wi on 20-Sep-2017 00:26 (138 replies)
Pages... 8 9 10


How to backup/copy an iphone app?
Created by Batman, last reply by scuwp on 19-Sep-2017 19:37 (24 replies)
Pages... 2


Imminent iPhone update to wipe out 32-bit apps
Created by Davy, last reply by surfisup1000 on 19-Sep-2017 23:04 (21 replies)
Pages... 2


New Vodafone Plans
Created by alasta, last reply by Linux on 18-Sep-2017 20:47 (84 replies)
Pages... 4 5 6


Vodafone ping down?
Created by 01EG, last reply by 01EG on 16-Sep-2017 18:26 (20 replies)
Pages... 2


Sky blames piracy for lost customers. Sky: it's time to wake up and smell the coffee.
Created by kingdragonfly, last reply by tdgeek on 19-Sep-2017 20:34 (479 replies)
Pages... 30 31 32


vodafone shutting down email?
Created by FatFurryGuy, last reply by JockTheKiwi on 19-Sep-2017 22:55 (267 replies)
Pages... 16 17 18