Telecom increases line rentals, again!

Forums › Spark New Zealand (including Skinny and BigPipe) › Telecom increases line rentals, again!

simon14

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#60681 30-Apr-2010 11:46

Telecom has again increased their line rentals in accordance with the increase in CPI, even though telecommunication costs have been rising at a lower rate than the CPI. (source) Telecom just do it because they can, pretty much.

Is this only an increase for Telecom's retail customers? Or does it also include their wholesale customers?

If it does include their wholesale customers, then we will obviously see a small increase from all providers who resell homeline.... so i'm hoping it's not.

Makes naked DSL a little more attractive.

NZCoderGuy

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#325214 30-Apr-2010 12:00

Agreed, naked DSL here and loving the low pricing.

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bazzer

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#325218 30-Apr-2010 12:04

Honestly, if they can, why shouldn't they? If you don't like it, change. If you can't change, that's a bummer.

scheduler

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#325223 30-Apr-2010 12:13

All I can say is I am glad We switched to using Vodafones Homephone Wireless and mobile Broadband. Vodafone must be laughing

ockel

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#325225 30-Apr-2010 12:18

If the legislators beleived that PPI was more appropriate than CPI at the time of writing the obligations then thats what they would have adopted.

As they beleived, in their infinite wisdom, to use CPI then Telecom will work within the letter of the law.
It wouldnt be the first time (or the last) that the analysis within the telecommunications market was hasty, flawed or inappropriate.

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simon14

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#325231 30-Apr-2010 12:40

So, is the wholesale price also increased or is it just Telecom retail?

Does anyone know?

lokeynz

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#325344 30-Apr-2010 16:09

Well thats the straw to break the camels back with me, I already have wireless as a second internet connection, will be porting my number to 2talk and cancelling my pots line/telecom broadband asap.

I can't understand how this is good business, they're already creaming it off landline rentals, POTS lines seem to be on a decline primarily because of the cost, now they help it along?

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richms

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#325373 30-Apr-2010 17:12

They raise it because if they dont, they cant in future.

Instead of blaming telecom, attribute blame where it lies - the obsolete kiwishare.

Is totalhome going up? Or is it just the old standard line rental that they have to provide? Seems the bundles that are cheaper are not changing in price.

I see no problem with this, telecom provide the best value to people on totalhome etc, if you move to orcon or vodafone you cant even change your tolls to another provider so comparing them as being cheaper than telecom who give you that flexibility is a bit off IMO.

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#325385 30-Apr-2010 18:04

lokeynz: Well thats the straw to break the camels back with me, I already have wireless as a second internet connection, will be porting my number to 2talk and cancelling my pots line/telecom broadband asap.

I can't understand how this is good business, they're already creaming it off landline rentals, POTS lines seem to be on a decline primarily because of the cost, now they help it along?

Telecom might be "creaming it" when the effective cost to deliver a voice circuit off a NEAX switch is virtually nohting after all of these years, but the cost ignores the fact that the FTTN rollout is costing in excess of $1 billion and replacement of the voice network and the rollout of RGW's for the VoIP platform which will start this year also comes at a very significant cost.

I know enough about VoIP to come out with the comment that comparing 2talk to Telecom's voice network is not a fair comparison. I doubt 2talk will even be able to get close to complying with the new Emergency Calling Code which is something that a company like Telecom has no choice but to comply with. These things come at a cost.

kfella2000

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#326703 5-May-2010 00:07

I am with gtxboyracer here. I been on naked dsl and VoIP for the last couple of years and I am enjoying the cheaper services all round as well.