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Draft copper network pricing: too low, too high -- or just right?

Stephen Bell | Feb. 6, 2013
Submissions on the Commerce Commission's draft determination of unbundled bitstream access (UBA) pricing are divided largely on expected lines into "for" and "against" camps

CallPlus and Kordia in a joint submission, point to VDSL as the technology for most likely next boost in copper speed. "In making this investment LLU builders will stimulate the demand for faster broadband services, including UFB. The cost of the regulated UBA service will not impact on investment decisions as the service is not a direct substitute."

Like other submitters CallPlus and Kordia say Chorus should have been well aware when it bid for UFB, that copper prices would drop as a result of the move to the cost-plus regime.

"Far from being a 'hapless victim' of the regulated rate; Chorus has many options to extract additional margin over and above the regulated price," they say.

 

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