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Thread ID: 135462 2013-11-05 18:19:00 Chorus exagerating a bit ? Digby (677) PC World Chat
Post ID Timestamp Content User
1358838 2013-11-05 18:19:00 Now that the Commerce Commission Regulator has set some lower prices for Chorus copper lines, Chorus are bleating to the government.

They want intervention to raise the price, or a financial top up etc.

They say they will loose money and get behind in their banking conventions.

I think they are over exaggerating,

As I read their figures, they will still make profit, just a smaller one.

I think we pay too much for landline and broadband, and its all down to Chorus.

If they can't complete their fibre roll out, the the government will have to give more areas away to other providors.
Digby (677)
1358839 2013-11-05 18:51:00 They are squealing, lying, and cheating. This is what they do best. Not only that, their person driving a van onto the roundabout at Titirangi/ScenicDrive/Atkinson etc at 1014 am On Tue 5/11/13 either did not bother to look for traffic on the roundabout, or just blatantly ignored it. R2x1 (4628)
1358840 2013-11-05 19:09:00 Thing is, most of the very profitable parts of the business belong to Telecom who are now completely seperate. Toll calls are where the money is in the phone network and as for broadband only a small part of that money goes to chorus.
It's a weird situation, they own most of the equipment and the copper network but lease it out wholesale to other companies who are the ones who actually sell the services and make the money. Chorus owns the part of the business that has all the costs & maintenance in it and not the high profit margins. How honest their complaints are I don't know, but I think they made some questionable choices when splitting off from Telecom for the UFB project which is yet to make any money.

Telecom always claimed the toll call business subsidised the rest of the phone network - stupid claim in my opinion, try and make a toll call without a local phone network and tell me again how they are separate parts of the business. Point is line rentals don't make any real money. Without the profits from toll calls and monthly broadband plans Chorus has to rely on other revenue streams. Trying to untangle who owns what between Chorus and Telecom is confusing though.
dugimodo (138)
1358841 2013-11-05 19:21:00 Ignoring Telecom (who are irrelevant to this discussion, since they are a separate business, selling completely different services to Chorus), making the copper cheaper is, IMO, a stupid move as it potentially undermines the saleability of fibre.

I went to VDSL because fibre isn't even scheduled to be available to me in the foreseeable future - despite being sandwiched between two schools a kilometre apart - and I am quite happy with VDSL speeds at the moment. No need to rush to jump onto fibre for me. Happy with copper.

Making it cheaper to use copper lines means that the price differential is likely to increase which makes it less attractive for punters to go to fibre (where it's available).
johcar (6283)
1358842 2013-11-05 19:31:00 Yes, its a tricky one If the govenment step in and keep Chorus's charges higher, we all miss out on lower copper BB charges.

If they don't step in, then copper charges drop and there is less incentive for punters to move to fibre.

I suppose the government should be looking long term.

Is it in NZ's interest to get rid of copper and just have fibre in the main towns?
I suppose the technical answer is yes.
Digby (677)
1358843 2013-11-05 21:06:00 VDSL was capable of delivering, but was ignored.
Fibre was flavour of the day, especially with gummint ministers and other vested interests.
What was best or fair for the consumer mattered not.
As long as the snouts had a new trough.

plus ça change, plus c'est la même chose
KarameaDave (15222)
1358844 2013-11-05 21:34:00 VDSL ?

The whole world is moving to fibre!

We have to keep up with the times, or get left behind with old technology and street cabinets and software etc etc.
Digby (677)
1358845 2013-11-05 22:58:00 Meh I'm very happy with my VDSL and its not even some of the fastest...

Word on the street is it'll cut their income from it down from 150 million PA to 120 million...

30 million a year for a few years .. Yet they've been given some 1 billion+, from the Govt towards the rollout? Yeah some things not quite right :p

Maybe I'm missing some figure here but I agree making VDSL2 cheaper is nice but it again removes a lot of incentive to shift to UFB.
Chilling_Silence (9)
1358846 2013-11-05 22:59:00 Anyway, I thought that the new copper prices weren't to take effect until December 2014. That gives a few months for Chorus to rebalance the books and maybe they'll have raked in some more fibre customers by then.
It would be much easier if fibre could be installed throughout the country overnight. But that can't happen so we all have to put up with interim solutions. I'd be interested in statistics of how many Govt ministers & MPs
have already got fibre.
coldot (6847)
1358847 2013-11-06 08:31:00 Ignoring Telecom (who are irrelevant to this discussion, since they are a separate business, ....

But you can't ignore (pre-split) Telecom - it was that idiot Rod Deane who saddled Telecom with a huge debt; most of which Chorus has been left with and have to service.
decibel (11645)
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