New Chorus Draft Pricing

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Lias

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#1188282 3-Dec-2014 21:33

old3eyes:
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..

I think your mistaking the big power companies for the local lines trusts I'm talking about, that return a huge amount of the profits to their customers and the community each year. Like WEL Energy trust (owns Wel Networks, UltraFastFibre), Electra Trust etc.

I'm a geek, a gamer, a dad, a Quic user, and an IT Professional. I have a full rack home lab, size 15 feet, an epic beard and Asperger's. I'm a bit of a Cypherpunk, who believes information wants to be free and the Net interprets censorship as damage and routes around it. If you use my Quic signup you can also use the code R570394EKGIZ8 for free setup.

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matisyahu

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#1188307 3-Dec-2014 22:44

Lias:
old3eyes:
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..

I think your mistaking the big power companies for the local lines trusts I'm talking about, that return a huge amount of the profits to their customers and the community each year. Like WEL Energy trust (owns Wel Networks, UltraFastFibre), Electra Trust etc.

What old3eyes also ignores is that these power companies are required by law to maximise their return for the shareholder (the government) - there is nothing stopping the government from creating a new category of state owned enterprise where 100% of the profits are put back into the organisation rather than giving the government a dividend.

"When the people are being beaten with a stick, they are not much happier if it is called 'the People's Stick'"

old3eyes

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#1188448 4-Dec-2014 08:31

kawaii:
Lias:
old3eyes:
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..

I think your mistaking the big power companies for the local lines trusts I'm talking about, that return a huge amount of the profits to their customers and the community each year. Like WEL Energy trust (owns Wel Networks, UltraFastFibre), Electra Trust etc.

What old3eyes also ignores is that these power companies are required by law to maximise their return for the shareholder (the government) - there is nothing stopping the government from creating a new category of state owned enterprise where 100% of the profits are put back into the organisation rather than giving the government a dividend.

You're dreaming if you think that will ever happen.

Regards,

Old3eyes

freitasm

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#1192639 10-Dec-2014 09:22

From Spark:

Spark said today it will change the price of selected homephone and broadband plans from 1 February 2015, following last week’s Commerce Commission draft decision on the amount that Chorus can charge Spark and other Retail Service Providers (RSPs) for access to the Chorus copper wholesale network.

Last week’s draft decision signalled:

A $5.40 increase (incl.GST) in the wholesale charges for homephone lines that have been in place for the past two years; and
A $4.54 increase (incl. GST) in the broadband lines charges that took effect on 1 December, 2014
Chorus has argued that an increase in charges to Spark and other RSPs must be backdated, and the Commerce Commission has yet to give a view on this matter.

Spark price changes from 1 February, 2015
The price of Spark’s homephone-only plans and the 40GB and 80GB broadband plans (ADSL and VDSL, excluding Ultra Fibre plans) will go up by between $2.50 and $4.25 a month from 1 February 2015. A summary of key price changes is in the table below. There will be similar increases in the price of business copper broadband plans, with full details available at spark.co.nz/pricechanges

While these increases will affect lower-end plans, Spark will continue delivering more value to its customers by lowering the price of Unlimited Broadband Data and homephone packages – also from 1 February.

These price changes affect Spark Home, Mobile and Business services. Spark Digital will be contacting its medium-to-large business and government customers to discuss any increases for Spark Digital services.

Spark Home, Mobile and Business Chief Executive Chris Quin said: “Over the past two years we have been competing hard in the broadband market on the basis that there would be a $10 reduction in the monthly charge we pay Chorus for providing copper broadband access.

“Market competition has brought great value for customers and the expected wholesale cost reduction for Spark and other ISPs has been built into current broadband prices. For example, Spark’s basic $75 broadband package today would have cost customers $105 two years ago.

“Now it’s indicated that wholesale broadband access charges will go down by almost $5, rather than $10, and homephone access changes will go up by more than $5. We understand this is how the process works, but we do have to react accordingly.

Mr Quin said the monthly price increases of between $2.50 and $4.25 meant that Spark would only partially recover increases in wholesale charges.

He acknowledged that the Commission’s decision on the new charges was a draft and was unlikely to be finalised until sometime next year. However, he noted that Chorus was arguing for the new wholesale charges to be backdated.

“Given this negative uncertainty, Spark has no choice but to change its prices now,” Mr Quin said.

“If the Commerce Commission confirms these charges and decides to backdate its final decision, then the price increases we’re announcing today will not fully cover our increased wholesale costs. Once we have a clearer view on the final decision on wholesale charges and whether these charges will be backdated, we will review the situation – and we will do the right thing by our customers.”

Unlimited Broadband Data price reduction, traffic management clause removed
Mr Quin said Spark was also taking this opportunity to simplify and streamline its broadband plans – and to continue delivering more value to its customers. From 1 February, Spark will drop the price of its Unlimited Broadband Data and homephone packages by $10, and remove the sale of the 150GB and 500GB data plans to new customers (since these would be priced on par with or above the Unlimited plan).

“The Unlimited data plans have been a great success and we want to make them even more attractive to customers. As we haven’t yet used traffic management on this plan, and will not be doing so in the near future, we have also decided to remove the traffic management policy from the Unlimited Broadband Data plans,” Mr Quin said.

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NZCrusader

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#1192699 10-Dec-2014 10:00

$50 per month for a home line only.

Simply extortion.

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rugrat

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#1194781 10-Dec-2014 12:16

Be interested to know the planned charge for naked and unlimited, if it's still the $20 difference without ultra mobile plan that would make it $79.

rugrat

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#1194792 10-Dec-2014 12:31

NZCrusader: $50 per month for a home line only.

Simply extortion.

I'm just quoting 2degrees prices cause that's the only one I know prices of:

Landline on your mobile $20 a month.
There's a $12 pack that lasts for 30 days to let you call any landline in country free of charge.

Total cost $32. All the people with landlines only would make a big saving to go that way if they realise, guess they're reluntant to change.

Edit: looks like got to be on monthly plan for landline on mobile, cheapest plan looks like $29 a month.

Can still do $12 call any landline on prepay though.

old3eyes

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#1194797 10-Dec-2014 12:33

Just wondering what justification can be given to Auckland, Wellington and Christchurch still being cheaper than the rest of NZ..??

Regards,

Old3eyes

NZCrusader

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#1194875 10-Dec-2014 13:55

rugrat:
NZCrusader: $50 per month for a home line only.

Simply extortion.

I'm just quoting 2degrees prices cause that's the only one I know prices of:

Landline on your mobile $20 a month.
There's a $12 pack that lasts for 30 days to let you call any landline in country free of charge.

Total cost $32. All the people with landlines only would make a big saving to go that way if they realise, guess they're reluntant to change.

Edit: looks like got to be on monthly plan for landline on mobile, cheapest plan looks like $29 a month.

Can still do $12 call any landline on prepay though.

+ rep for you.

Good find. Will suggest to family.

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freitasm

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#1200332 19-Dec-2014 09:01

And the Chorus comments on backdating:

Commission publishes emerging view on backdating prices for Chorus’ copper lines and broadband service

The Commerce Commission has today published its emerging view on backdating the final prices that Chorus charges for its local copper lines and broadband service.

The Commission’s current view is that once the final prices for the unbundled copper local loop (UCLL) and unbundled bitstream access service (UBA) are determined, they should be backdated to 1 December 2014, but not earlier.

“Backdating is an important issue to us and the industry. We are publishing our emerging view on backdating now to provide as much certainty to the market as possible,” said Dr Stephen Gale, Telecommunications Commissioner.

The Commission is now consulting on the backdating issue and is welcoming submissions from interested parties.

The Commission has also published an updated process and timeframes for the remainder of the pricing reviews.

All industry parties asked the Commission for an extension to submit on the draft decisions published earlier in December. Due to these requests and the complexity of the wide range of issues being consulted on, the Commission has extended the deadline for submissions to 20 February 2015. The deadline for cross-submissions is now 20 March 2015.

“We appreciate that there is a large volume of complex information for submitters to review so we have agreed to a four week extension to the consultation period. This has a flow-on effect for the conference, which will now be held in April 2015,” said Dr Gale.

“We are also consolidating the various pieces of work relating to the pricing reviews, so are now planning to produce a full package of information including draft monthly UCLL and UBA charges, non-recurring charges and backdating in a further draft decision in May 2015. This means another round of consultation to ensure all interested parties have the opportunity to provide some final input,” said Dr Gale.

The Commission is now expecting to make its final decisions on UCLL and UBA pricing, non-recurring charges and backdating in September 2015.

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