Price Increase

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#2029226 4-Jun-2018 14:12

If you haven't followed the economics and the negotiations and selections at the start of the process this probably sounds odd. If you have, you'd realise this has been on the cards since before the first UFB connection was made.

Cheers - N

Please note all comments are the product of my own brain and don't necessarily represent the position or opinions of my employer, previous employers, colleagues, friends or pets.

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Lias

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#2029406 4-Jun-2018 20:20

Is it any surprise they are screwing the consumer over a bit more? Chorus is where almost all the institutional greed and evil went from Telecom when it split to become Chorus/Spark. Chorus is the only LFC that's a purely commercial venture and I think it stinks. Northpower and UFF are both owned by the local community trusts which is great (and I think all the LFC's should be like this), Enable is owned by Christchurch City Council which is pushing it, and Chorus is owned by ~~greed fuelled capitalists~~ investors.

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Talkiet

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#2029410 4-Jun-2018 20:27

Go and read the original agreements between the LFCsand CFH (at the time)... Then come back and revise your post.

N

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sbiddle

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#2029411 4-Jun-2018 20:27

Lias:

Is it any surprise they are screwing the consumer over a bit more? Chorus is where almost all the institutional greed and evil went from Telecom when it split to become Chorus/Spark. Chorus is the only LFC that's a purely commercial venture and I think it stinks. Northpower and UFF are both owned by the local community trusts which is great (and I think all the LFC's should be like this), Enable is owned by Christchurch City Council which is pushing it, and Chorus is owned by greed fuelled capitalists investors.

The price increases apply to the LFCs and Chorus. They were all part of the original proposal from CFH who set pricing so have nothing at all to do with Chorus.

DarkShadow

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#2029445 4-Jun-2018 20:45

Lias:

Chorus is owned by greed fuelled capitalists investors.

Did you know 40+% of Chorus is owned by the government?

yitz

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#2029460 4-Jun-2018 21:31

By 2020 I'd like to see the current entry level price point replaced with 200/20 and "gig" at no more than the current regulated 100/50 offering.

#letsdothis

mercutio

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#2029500 4-Jun-2018 22:23

yitz: By 2020 I'd like to see the current entry level price point replaced with 200/20 and "gig" at no more than the current regulated 100/50 offering. #letsdothis

by 2020 it'd be about time to raise the upload speed.

already cellphones are doign 4k video recording, i'm not sure if it's at 60hz or not, but 4k+ video with 60+ fps transmitted in real time (which allows less combined frames for compression) for multiple simultaneous users is an easy use for higher upload speeds. (not that such is common atm, but it'd nice to not have the connection be in the way of such) and capping the upload speed is basically an artificial limit. so 200/50 or something may be more appropriate for entry level plan for 2020.

Scott3

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#2029505 4-Jun-2018 22:44

irongarment: Doesn't this strike anyone as wrong? Surely prices should change in response to market conditions? To allow prices to be controlled in this manner smacks of monopoly. Or is this just the current five-year plan?

Networks are generally natural monopolies.

The cost and inconvenicnce of building second roading / water / sewage / power / data networks greatly outweigh the benifits that would be gained by consumer choice.

The way we deal with it is either keep the network in public ownership (i.e. roading), or by allowing it to be owned privately, in the latter case, the commerice commision can and does regulate prices so monopolists cannot milk the market for supernormal profits.

With regards to ufb, pricing schedules were agreed before the build began. The agreed priceing schedules compensate the network owners for the substantial amount they outlayed for the build.

allio

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#2029886 5-Jun-2018 15:58

The contract should have required that Chorus complete the rollout of UFB1 before they got to start raising prices. Still a year away from it even landing in my street but the price is already climbing - cool.

mattwnz

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#2029903 5-Jun-2018 16:32

Surely it should be tied to NZs inflation, which is supposedly really low at the moment. But inflation in the real world, with houses prices etc, seems to be a lot higher than that.

djtOtago

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#2029909 5-Jun-2018 16:44

sonyxperiageek: If it's only a $2 increase, why is Slingshot charging $2.30?

My email from Slingshot says "This means that from your July bill onwards your monthly broadband service cost will increase by $1.15"

Must be different increases depending on location I guess.

djtOtago

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#2029920 5-Jun-2018 16:55

I'm on a Gigabit plan.

But I'm also in Gigatown.

yitz

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#2029923 5-Jun-2018 17:01

You might be in for a bigger price increase once the Gigatown promo ends in February 2019

tdgeek

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#2029930 5-Jun-2018 17:39

yitz: By 2020 I'd like to see the current entry level price point replaced with 200/20 and "gig" at no more than the current regulated 100/50 offering. #letsdothis

And instead of gradually increasing the prices, maybe its better to get the whole increase from day 1?

Maybe we should expect a price drop of 40%, plus free this and free that. How much was your fibre install? Mine was free, including the guys that scoped, the guys that ran it under my lawn to my house, and the guy that fed it into my living room. Thats $1000 of value, minimum. Maybe I shoulda asked for free Netflix for 10 years as well? At least.....

Roll on user pays if you ask me, too many selfish ones.

tdgeek

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#2029931 5-Jun-2018 17:40

Read @sbiddle

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