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BDFL - Memuneh
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  Reply # 1187182 2-Dec-2014 15:40
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And slingshot:


Today’s broadband pricing decision will end up costing Kiwi consumers, CallPlus says.

“The industry has been expecting wholesale prices significantly lower than the $38.39 announced today,” says Mark Callander, CEO CallPlus.

“The good news for Kiwi consumers is that Flip, Orcon and Slingshot’s current prices were implemented in anticipation of a lower wholesale price. The bad news is that with today’s announcement, any further price innovation will be tricky.”

However, Callander says, that more troubling for competition is the UCLL price hike.

“Companies such as ours have spent millions unbundling. Unbundling has bought price reductions and innovation to Kiwis – and ultimately driven down broadband costs across the country. Today’s announcement is a massive kick in the guts for unbundlers.

“If today’s price remains it will penalise competitors who have invested in their own equipment to control broadband services and provide innovation as a result.”

Callander says CallPlus is reviewing the announcement and details in-depth, and will weigh up its options in the coming days.

“We know the Commission is keen to finish the process quickly, and end uncertainty, but more important is getting it right. This decision, if the price is unchanged, will have a serious impact on competition and it, ultimately, affects every New Zealander.

“We are surprised at the increase. Essentially it’s just grabbing a few extra bucks from every Kiwi household, month-in, month-out, and transferring it to Chorus’ shareholders.

“That doesn’t sit well with us.”




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  Reply # 1187275 2-Dec-2014 17:58
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NZCrusader: Personally I think that the landlines (both copper and fiber) should be publicly owned.

That way it is more of a public service, than a for profit company.
I really do feel sorry for those living rurally.


While I do accept that it is just a "con" of living rurally, I think that there needs to be some base speed (maybe at least 2-5 mbit) that must be achieved (with comparable pricing and data caps to urban options).
Some of these people living rurally grow our food and other produce. It would be nice if they could get a better offering.

Vodafones RBI is promising, but the data cap limits is what deters most of the people I have spoken to about it.

EDIT:

This was in response to the story here on the 2nd post:
http://www.stuff.co.nz/technology/digital-living/63627150/congestion-slows-superhighway


I second that - Chorus should have been nationalised with an aim to bring fibre to every home in NZ with the added bonus that hopefully it would mean that telecommuting and living outside the major hubs (Auckland, Wellington, Christchurch) might become a possibility to the alternative of massive centralisation that has resulted in the mess that is occurring in Auckland. Get everyone on the same network (push Vodafone to retire its HFC network) and move onto a single network that is regulated and run for the benefit of all NZ'ders - private users as well as big businesses.




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  Reply # 1187308 2-Dec-2014 18:24
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I've been calling for Telecom (prior to break-up) then Chorus to be nationalized and run as a "not for profit" type trust like the power company trusts for years.






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  Reply # 1187316 2-Dec-2014 18:45

I liked some of the points made in this article.  Spark's response really seemed over the top to me.  This article explains the mock outrage. 

http://www.stuff.co.nz/business/opinion-analysis/63748776/sparks-pricing-talk-rings-hollow



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  Reply # 1187322 2-Dec-2014 18:52
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Bobdn: I liked some of the points made in this article.  Spark's response really seemed over the top to me.  This article explains the mock outrage. 

http://www.stuff.co.nz/business/opinion-analysis/63748776/sparks-pricing-talk-rings-hollow


Agreed - why would they plan based on an over the top optimistic scenario that was never likely in the first place. It'll be interesting to see what happens but long term fibre is the future so it is a matter time before we end up seeing the eventual putting out to pasture of the network.

Just a word of warning btw, don't go near the comment section of that article if you wish to keep your faith in humanity.




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eth

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  Reply # 1187466 2-Dec-2014 21:17
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I have to agree with the above posts. It is ridiculous that Spark and Callplus are now claiming that they are conducting 'urgent price reviews' after this latest decision. The ISPs over last few years were paying Chorus $44 and clearly still making a profit. Any saving, $5 or $10 is still a huge saving in operating costs for the ISPs each year which should in theory allow them to pass on a $5 - $10 saving to consumers. I think it is unlikely that they would pass on any savings anyway which makes the Coalition for Fair Internet Pricing's opposition to the 'copper tax' really ironic, especially now the ISPs are threatening to raise their prices after these latest price drops. Also, they should have anticipated that the $10 price drop could have been reduced as it has been today. It seems that it is just convenient for them to blame everyone else.

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  Reply # 1187556 2-Dec-2014 22:54
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That'll teach Callplus for leading the race to the below profitability line.

Broadband pricing will only go up from here. Don't forget wholesale UFB costs go up every year in a linear fashion from 2015.

ckc

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  Reply # 1187585 2-Dec-2014 23:26
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Ah, New Zealand. Installing the fibre network the world is jealous of and we can't afford. :)

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  Reply # 1187595 3-Dec-2014 00:40
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myfullflavour: That'll teach Callplus for leading the race to the below profitability line.

Broadband pricing will only go up from here. Don't forget wholesale UFB costs go up every year in a linear fashion from 2015.


hopefully end users will still see a discount via voip offerings

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  Reply # 1187598 3-Dec-2014 01:02
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myfullflavour: That'll teach Callplus for leading the race to the below profitability line.

Broadband pricing will only go up from here. Don't forget wholesale UFB costs go up every year in a linear fashion from 2015.


By how much will it go buy up by each year? I thought UFB pricing was controlled by the ComCom.




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  Reply # 1187613 3-Dec-2014 07:40
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kawaii:
myfullflavour: That'll teach Callplus for leading the race to the below profitability line.

Broadband pricing will only go up from here. Don't forget wholesale UFB costs go up every year in a linear fashion from 2015.


By how much will it go buy up by each year? I thought UFB pricing was controlled by the ComCom.


The increases were all set in stone when UFB pricing was set in 2010ish. It's nothing new, and was a move to increase low end (30/10) pricing upwards while bringing down the price of high end plans. With the launch of faster speeds the impact is this is pretty minimal.
 

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  Reply # 1187636 3-Dec-2014 08:51
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Lias: I've been calling for Telecom (prior to break-up) then Chorus to be nationalized and run as a "not for profit" type trust like the power company trusts for years.




And these power companies have held prices how??    Put Chorus as a public utility owned by the Gov would see the same price gouging as we see with the power companies now..




Regards,

Old3eyes


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  Reply # 1187652 3-Dec-2014 09:02
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kawaii:
myfullflavour: That'll teach Callplus for leading the race to the below profitability line.

Broadband pricing will only go up from here. Don't forget wholesale UFB costs go up every year in a linear fashion from 2015.


By how much will it go buy up by each year? I thought UFB pricing was controlled by the ComCom.


For UFF (I didn't check the Chorus docs) 30/10 ends up being $42.50 by 2020, an increase of $5.

For 100/20 plans or faster there is either no movement or the price comes down.

The majority of residential customers are signing 30/10 plans right now as the majority of ISPs consider this "entry level".

Good to see ISPs like Big Pipe raising the "entry level" bar to 100Mbps.

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  Reply # 1187680 3-Dec-2014 09:40
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All of the UFB providers have a contracted glidepath for the entry level fibre price. The monthly price increases +$1 each year from 1 July 2016 to 2020. This is a commercial price agreed when the contracts were signed.

http://www.crownfibre.govt.nz/media/19366/chorus%20published%20ufb%20price%20book%20summary%20(15%20july%202011).pdf

After that fibre pricing gets reset. That is where the telecommunications review comes in that is meant to be finished by 2017. It sets fibre pricing once the contracted period runs out, as well as a bunch of other things. It should kick off early next year.

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  Reply # 1188232 3-Dec-2014 20:07

So Chorus thinks the final FPP decision next year will result in prices around $45 which is what it was before the $10 drop the other day, based off the new modelling data they have supplied to the ComCom:

“While the FPP exercise is a hypothetical exercise of considering the cost of a network provider replacing Chorus and building a network today, we have real world data about building a network today,” said Mark Ratcliffe, CEO Chorus. 

“The nature of our business means that Chorus is well placed to provide real world, credible, New Zealand-based cost information and we believe it is valuable to provide this data into the FPP process. “We have consistently said that once the NZ reality has been taken into account, that we do not expect the FPP to result in prices lower than the pre-benchmarking level of around $45, and we are providing our own model to the Commission as evidence to support this.”


See more at: http://www.chorus.co.nz/chorus-releases-update-of-its-fpp-modelling-data#sthash.SBMNWOaV.dpuf

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