Broadband price review may be overridden

Last updated 09:59 03/04/2013

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The Commerce Commission confirmed this morning that it will press ahead with a review of the prices Chorus should be allowed to charge for its copper-based broadband products.

That is even though any decisions it makes may be overridden by a wider review of telecommunications regulations that Communications Minister Amy Adams announced in February.

Telecommunications Commissioner Stephen Gale said the commission expected to finalise the wholesale price Chorus should be able to charge for copper broadband in August.

The commission said the Government had indicated any new pricing would not come into effect until "some time in 2015", but existing law required the commission to be ready to impose new cost-based pricing from December 2014.

The commission proposed slashing the price Chorus could charge for wholesale copper broadband connections from $21.46 a month to $8.93 in a draft report December, prompting Adams to step in with the proposed rewrite of telecommunications legislation in February.  

The prices do not include the cost of a phone line.

Gale said it was possible cost-based pricing would still need to be regulated for wholesale copper broadband, despite the wider regulatory review.

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