Matthew Hooton will be crying into his cornflakes this morning, which will take the edge off the hangover somewhat. The media are finally starting to see through his highly misleading campaign.
In an editorial in The Press yesterday, the paper gets to the heart of the issue â€“ the campaign is just designed to line the pockets of groups like Vodafone, Slingshot, Orcon and CallPlus.
A well-organised campaign is being orchestrated on the matter, it is true, suggesting a Government proposal would amount to an extra “tax” on broadband users of some $600 million over the next five years.
This glides over the fact that the shareholders of Vodafone, one of the largest international telecommunications companies in the world, and hundreds of times bigger than Chorus, stand to benefit if the other side of the argument prevails.
Labour’s prime objection is to the Government’s intervention into something it believes should have been left to the Commerce Commission. There would normally be some validity to that argument. Since Chorus’s monopoly of the copper network is deemed to make it unsafe to leave pricing to the free market, the next best option is an independent regulator.Â Read more »