Draft LLU Price Decision - Well Done, Commerce Commission!
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Posted Tue 31 July 2007 @ 4:46 p.m. by Ernie Newman
The Commission's LLU price announcement this morning (see Sarah Putt's posting below) has met a positive response from TUANZ though with a slight caution around the rural issue.
TUANZ's response to media has been:
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We were surprised to see the urban/rural segregation, but understand why the Commission has done this
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The urban price appears very competitive; we would expect it to give real encouragement to the competing carriers to embrace LLU
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The rural price is not surprising - basic engineering demonstrates that the underlying cost of broadband is always going to be much cheaper in high-density areas than in rural
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However, that's not the Commission's concern. Its brief is to do the arithmetic around costs, while the job of looking at any policy decisions around cross subsidy rests with the government. We are confident the forthcoming rural review will address this.
There will be media coverage tonight on National Radio and TV3 News among others. The TUANZ Policy Committee will be preparing a submission in response on behalf of users.
Categories: Fixed line carriers | ISPs | Regulatory | TUANZ policy | Vendors