Regulators question Chorus price premium

Last updated 09:20 30/05/2014

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Regulators have questioned whether Chorus will be allowed to charge extra for the improved copper broadband services it announced this month.

The telecommunications infrastructure company said two weeks ago that it planned to offer internet providers a copper broadband service with more reliable speeds, called Boost HD, that would guarantee customers would be able to watch a high definition video stream without interruption even at peak times.

While its pricing will initially be the same as its existing copper broadband service, at $44.98 a month, Chorus has not committed to lowering the price once the regulated price of its standard copper-based service falls to $34.44 a month in December.

The Commerce Commission said in a statement this morning that it would consult the industry on whether Chorus should be allowed to apply a price premium for Boost HD and its related service Boost VDSL.

It expects to issue a final decision in July.

The December price reduction may be subject to change next year, and could even be reversed, as Chorus has exercised its right to demand the commission carry out a more detailed review of the prices it should be allowed to charge for access to services provided on its copper network.

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