Cost inhibits broadband uptake

The Commerce Commission has finalised its report into factors that could inhibit the uptake of ultrafast broadband, a draft of which was criticised for being all talk and no action.

Telecommunications commissioner Ross Patterson promised the commission would ''report on market developments - including UFB uptake, data cap changes and the range of services offered over UFB - as part of its monitoring functions'' in future.

''Following feedback from interested parties, we are still seeing two main areas identified as being important to consumers; costs relating to connecting and using high speed broadband, and the availability of video-on-demand services,'' Patterson said.

MediaWorks and TelstraClear signalled their disappointment earlier this month that the commission was not promising concrete steps on what they saw as the key issue; the availability of competing ''content'' services, such as online television services.

When the commission embarked on the report there were expectations it might signal an appetite for regulating the pay-television industry to give Sky's competitors a leg-up using ultrafast broadband to launch rival services.

However this has moved into a separate Commerce Act investigation, announced last month, which will consider whether Sky's contracts with programme suppliers and internet providers breach competition law.