Spark, Vodafone and Callplus together represent 94 percent of the residential internet market and all have put up their prices for home internet packages.
Internet service providers blame the rises on the Commerce Commission’s recent draft decision which reduced the price companies pay for use of the copper wire network.
The charges relate to what Chorus (the wholesaler) charges internet service providers and telcos like Spark, Vodafone, Orcon, Slingshot and Flip, for accessing their copper infrastructure which was deployed years ago by the Post Office. Those wires run down almost every street in the country and are the phone lines we have been using for decades.
Because it is a monopoly, the price that the wholesaler can charge is regulated by the Commerce Commission.
In 2011, when Telecom was split into a retail arm (Telecom) and a wholesale arm (Chorus), the Commission had to work out what Chorus’s wholesale services were worth, and what price they would charge internet service providers and telcos, including Telecom (now Spark) to use those services.
The price was originally set at about $45 per customer per month. Read more »
Kim Dotcom is blowing hard once again on Twitter.
He is going on about ‘his’ MegaChat…funny thing is he was crying poverty and said he had given all his shares in Mega to his estranged missus…so quite how it is his is another matter entirely. Perhaps he has misled another court?
In any case his boastfulness ignores a problem.
Chris Keall at NBR explains.
Mega has said it will abide by the laws of every company it operates in. As a registered commercial entity it can barely take any other stance.
What would Mega do if a law enforcement agency in a country its service operates in (that is, anywhere), hands it, or one of its users, a lawful warrant asking for encryption keys? In NZ, it has to live under the Telecommunications (Interception Capability and Security) Act, aka TICS, which gives our government broad-brush powers to demand depcryption keys from a service provider when there is a (very broadly defined) threat to NZ’s national interest. This as-yet-untested legislation gives the ICT Minister discretion over who is defined as a service provider. Network operators like Spark, Vodafone, 2degrees are very clearly service providers. It’s more of a grey area for the likes of Microsoft Skype, Google Hangouts and now MegaChat – but I’m guessing the Crown won’t give MegaChat a free pass. ¬† Read more »
On Saturday I wrote about the non-existent cellphone coverage I am experiencing and explored with my readers possible solutions.
My choices were:
- Stay with Spark and get some sort of expensive booster thingy
- Move to Vodafone, a company that I used to be with for 15 years and left because of poor service.
- Move to 2Degrees that appeared on the surface to have better coverage, but using a company who had blacklisted me with their advertising.
The second and third options were as unpalatable as coughing a large amount of money for a repeater/booster thingy.
Still with 285,000 plus readers there was a marketing opportunity for an astute and fast moving company.
One company was fast moving.
Can you guess which? ¬† Read more »
I have a technical dilemma.
I have moved house, no you can’t know where I live…because the media will then know. I am not having my family hounded by them again.
However I have a problem.
I am currently with Telecom…and live in a black spot. 200m in any direction and I have full coverage but have no bars at all in most of the house, but out by the fence one bar, or upstairs. This is unacceptable. The network coverage map shows no 4G coverage, little or no 3G coverage nor any other sort of coverage. It is next to useless.
Is there a solution? I’m thinking no, and so have some choices to make. ¬† Read more »
Matthew Hooton and a collection of greedy ISPs mounted a campaign to lower the core costs of broadband…labelling the higher prices a “Copper Tax”.
Now that prices have dropped those same ISPs, who were saying that consumers would pay higher prices, aren’t passing on those savings to consumers.
The whole campaign was a fraud and now it is revealed as such.
Hamish Fletcher reports:
Internet companies will enjoy a reduction in some of their wholesale costs in December but aren’t committed to passing on these savings directly to consumers then.
Cuts to what infrastructure company Chorus charges internet retailers like Vodafone and Orcon for some wholesale copper-line broadband services are due to come into effect on December 1.
While two different price changes made by the Commerce Commission will come in on that day, Chorus has requested a wider review of both sets of prices from the regulator.
Although it had been aiming to have both reviews completed by the time the new pricing came into force, the commission on Thursday said it now planned to have a draft decision on both sets of prices by December and a final decision in April.
This means the price change will be in effect for at least four months before any possible change the commission could make in its final rulings.
But while internet providers will enjoy some lower wholesale costs over this time, none are committing themselves to lower prices for customers straight away in December.
Maybe Chorus should employ Hooton to put the acid back on the ISPs, what a surprise they aren’t passing on the savings. ¬†¬† Read more »
As some of you may have picked up on, I recently moved house. ¬†The Mrs did a great job project managing the whole thing. ¬†It ran like clockwork. ¬†Nothing went wrong.
Except for trying to get broadband on.
Having been a loyal Telecom customer for close to 30 years, with all our connections, mobile, business and private through them didn’t count for much when you are up against organisational inertia.
In simple terms, Telecom refuse to even start your broadband order until you are physically present on-site.
In the mean time, depending on who you talk to, you are told all sorts of placating stories that “yes, it’s on order”, and “yes, it’s booked to be turned on”, and so on. ¬†We’re not stupid, we know about organisational inertia, and we phoned, and phoned, and checked and every time we were told it was all in hand.
When arriving at the new place, after some investigation, it shows that we had a really amusing situation. ¬†The previous occupants were on Orcon fiber. ¬†Before they had that, they had Vodafone broadband.
How do I know this? ¬† Read more »
Tom Hunt and Jo Moir report on the fact some shoppers were having difficulty getting rid of all the money they have while poverty pervades their lives
Retailers were fuming after a Vodafone glitch shut down eftpos for hours on the busiest shopping day of the year.
A broadband server problem with Vodafone crashed eftpos at some Lower Hutt shops from about 10.30am yesterday, with some experiencing problems through till late afternoon.
Many shops, including a number in the packed Westfield Queensgate Shopping Centre, were unable to process transactions because of the outage.
At clothing store Meccano in the shopping centre, shoppers walked out in frustration – taking their money with them, manager Charlene Roughton said.
The crash occurred at the busiest time on the busiest shopping day, with lines outside cash machines growing as the problem dragged on.
“We had a lot of people come in with Meccano cards and Westfield cards that they wanted to spend and simply couldn’t,” she said.
“It’s generally the busiest day of the year for us and was made even worse by happening at the worst time.”
People are going hungry. ¬†Children are without shoes. ¬†The very fabric of society is tearing apart… ¬† Read more »
The word from my Labour sources is that they want rid of Clare Curran.
Everyone in Dunedin has known this for some time and David Cunliffe has made significant promises to Lesley Soper who worked hard for his election as leader.
It seems though that she is trying to curry favour by becoming Labour’s Minister of Donations.
It is astonishing how Labour will do anything to deflect the story away from the truth around Chorus and essentially run the corporate lines on behalf of their telco mates, and Matthew Hooton’s Corporate Wrecking Crew.¬† ¬† Read more »
Or-Con is bombarding us with the unpleasant view of Krim Dot-Con talking about uncapped data plans. They claim anything is “not cool”.
They are also part of corporate whore Matthew Hooton’s band of corporate wreckers.
The Coalition of Corporate Wreckers claim that businesses and householders will now save $150.00 per annum…But will they.
The whole attack on Chorus was about wholesale prices. Now those are set to drop will they do as promised and lower retail prices as a result or will this bad of corporate robbers simply pocket the windfall profits?
I’m picking they will trouser the lot.
Ms Adams, says, in effect, Get real suckers, ISPs will simply pocket the savings. She said in Parliament yesterday:
I can tell you who it is not benefiting. It is not the consumers; it is the retailers. So if we insist on a lower price for the wholesalers, as Labour wants to happen‚ÄĒfollow the money. Follow the money. I will tell you who benefits: the large corporates like Vodafone, which benefits from the extra money. That is what Labour is supporting.
That is what it wants to see happen. I will tell you what will happen now. The consumers will not see anything at all, I predict. If they do, it will be a tiny fraction of any drop
Ms Adams theory is quite easily tested.¬† Read more »
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‚Äôs 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‚Äôs 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 »