ihug and CallPlus not happy with Commerce Commissions ruling

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nzbnw

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#8715 24-Jul-2006 23:10

Any surprises here, I guess not. It seems that the ComCom have set what they believe is a 'fair' price to pay for unconstrained bitstream through Telecom Wholesale.

Some will never be happy, and in this case, it seems ihug and CallPlus really do want that proverbial "free lunch". Although it could be in the interest of Telecom to offer such pricing to give ISP's an incentive to purchase wholesale products, instead of installing their own equipment in Telecom's exchanges under the pending LLU.

Thoughts? Comments?

http://www.nzherald.co.nz/topic/story.cfm?c_id=137&objectid=10392683

ljbade

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#42358 25-Jul-2006 08:23

It seems the only way iHug and CallPlus make any money is by complaining. They don't get off their butts and do anyyhing about now do they.... No they just sit there whining.

Hopefully iHug's new owners will whip the company into shape.

juha

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#42360 25-Jul-2006 08:45

nzbnw: Any surprises here, I guess not. It seems that the ComCom have set what they believe is a 'fair' price to pay for unconstrained bitstream through Telecom Wholesale.

Some will never be happy, and in this case, it seems ihug and CallPlus really do want that proverbial "free lunch". Although it could be in the interest of Telecom to offer such pricing to give ISP's an incentive to purchase wholesale products, instead of installing their own equipment in Telecom's exchanges under the pending LLU.

Thoughts? Comments?

http://www.nzherald.co.nz/topic/story.cfm?c_id=137&objectid=10392683

Well, do the maths...

Cheapest Xtra broadband plan: $29.95 including GST
RUBS wholesale pricing: $31.55 including GST

Ergo, retail is cheaper than wholesale.

There's no real difference between the two to justify the price differential.

Juha

nzbnw

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#42361 25-Jul-2006 09:08

juha: Well, do the maths...

Cheapest Xtra broadband plan: $29.95 including GST
RUBS wholesale pricing: $31.55 including GST

Ergo, retail is cheaper than wholesale.

There's no real difference between the two to justify the price differential.

I don’t doubt you on RUBS, but this is "unconstrained bitstream". Surely ISP's will still be able to control speed caps on plans, to distinguish their products from their competitors?? One would think they would not offer 'full speed' on all their plans?