Te Huarahi Tika Trust

The truth about the Coalition for Fair Internet Pricing

WreckingCrew copy

Earlier today, I blogged about how Matthew Hooton, Paul Brislen, Vodafone and a host of vested interests have duped Kiwi households out of hundreds of millions of dollars.

Essentially, the Labour-leaning Coalition for Fair Internet Pricing conned media into thinking their campaign was about going into bat for Kiwi households. But it is actually about lining the pockets of greedy telcos like Vodafone, Orcon, Slingshot and their mates.

I want to refer people to the Coalition’s original press release when it launched its campaign.

Now that media have finally wised up to what I have been saying, I have made some changes to the Coalition’s press release to more accurately reflect its true position.

Broad Coalition Says Yes To $600 Million Windfall for Telcos

A coalition of Kiwi companies, industry associations and consumer advocate groups has today announced proposals to introduce what economists Covec say is a new windfall of at least $600 million for telcos such as Vodafone, Orcon, Slingshot and Telecom.

In a discussion document issued last month, Communications & IT Minister Amy Adams proposed to provide certainty for both the industry and Kiwi households by overruling a crazy determination by the Commerce Commission that would see Chorus stripped off hundreds of millions of dollars it planned it use for the rollout of ultra-fast broadband.   Read more »

How Matthew Hooton duped Kiwi households out of hundreds of millions of dollars

The penny has finally dropped for the media – they have been duped by corporate whore and business wrecker Matthew Hooton.

But this is actually deadly serious.

Hooton’s lies have shaved more than $500 million off the value of Chorus, left thousands of shareholders crapping themselves, given New Zealand a poor reputation internationally as a place to invest, and ripped off Kiwi households.

Hooton and his band of weirdos and nut jobs have conned media into believing that households were going to have a “copper tax” imposed on them. Th entire premise of the campaign was based on a lie.

They did this by claiming that if the government legislated over the Commerce Commission’s crazy $10 a month reduction in the copper price, Chorus would be getting about $400 million that should instead be going to Kiwi households instead.

As part of their campaign, Hooton’s mob promised that every Kiwi household would pay $150 less a year for their broadband.

But now that the government has decided to let the commission’s price stand, the actual truth has emerged. From day one Hooton’s campaign has been about lining the pockets of Vodafone and the other corporate bludgers who were part of the campaign.

That’s right. Their campaign that was based on going into bat for Kiwi households, will actually see Vodafone, as the largest player in this Game of Moans, reap hundreds of millions of dollars in extra revenue.

Kiwi households have been ripped off. Their broadband bill won’t drop by $150 a year – in fact it won’t drop at all.

By refusing to confirm that they will pass on the Commerce Commission’s price cut, Vodafone and the other retailer service providers are basically admitting that they will keep all the money for themselves.

That’s the Vodafone that recently announced it had billions of dollars in profit

Regular readers will know there’s one thing I hate more than hypocrites, and that’s liars. Yes, Vodafone, I’m looking at you.

In September, when Hooton launched his campaign against the Government (revealed on this blog days before it was officially announced), Vodafone went to extreme lengths to say it had nothing to do with the campaign.

Tom Chignell, one of Vodafone’s senior executives, even took to this blog to make their position clear:

“Just to be clear Vodafone is not involved in such a campaign.”

But I always knew it was bullshit.

“While Vodafone has pulled out of the campaign, at least in a public sense, I’m told they are still pulling the campaign levers behind the scenes.”

And now finally, the media have actually started asking Vodafone some questions.

Adam Bennett at the NZ Herald got Vodafone to admit that they were actually the main player behind the campaign.

Vodafone on the Coalition for Fair Internet Pricing:

September 13: “We decided a few days ago that (the coalition) probably wasn’t the best thing for Vodafone at this stage.”
Yesterday: Did you give financial support to the coalition?: “Yes we did … I think we’ve been reasonably open about that.”

This is outrageous. Vodafone has lied about its involvement in the campaign. Vodafone has led a campaign to make sure Chorus loses hundreds of millions of dollars and that money goes into the pockets of Vodafone and other corporate bludger retail service providers.

There are some serious questions that need to be asked of Vodafone and everyone involved in the Coalition for Fair Internet Pricing.

Consumer NZ, InternetNZ, the Telecommunication Users Association of New Zealand (TUANZ), CallPlus, Slingshot, the Federation of Maori Authorities, Greypower, Hautaki Trust, KiwiBlog, KLR Holdings, National Urban Maori Authorities, New Zealand Union of Students’ Associations, Orcon, Rural Women, Te Huarahi Tika Trust and the Unite Union.

Perhaps our favourite travel blogger David Farrar, who is also deeply embedded in this dishonest the campaign, can give us some answers.

The entire country has been misled so that’s the least we deserve, David.

Perhaps Paul Brislen, if he could just pause from chatting with Labour MPs and other left-wingers on Twitter for just a moment, might like to explain the political lobbying his supposedly neutral organisation is doing.

I have more to reveal. Watch this space.

Media finally catch on to Hooton’s tricks

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 – 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.  Read more »