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Chorus outlines UBA and Boost proposals...

19 Sep 2014

Chorus has sent the Commerce Commission its submission in response to their consultation paper on issues relating to Chorus’ proposed changes to the UBA service.

The submission, submitted yesterday, included Chorus’ external legal advice, from Minter Ellison Rudd Watts and Chapman Tripp, supporting Chorus’ position on the UBA proposals.

In a covering letter Mark Ratcliffe, Chorus’ Chief Executive Officer, outlined the market context for Chorus’ desire to offer wholesale customers, and their end-users, choices of differentiated broadband services that best suit their desired purpose.

“In the three years since the demerger of Chorus into an open access wholesale only company we have seen monumental changes within the New Zealand broadband market," Ratcliffe says.

“Broadband lines have grown by 16% to 1.29m connections and 77% of households now have broadband at home.

"The number of residential broadband lines capable of speeds greater than 10Mbps have increased to 90% and New Zealand’s OECD ranking has moved up to 15th place where we sit comfortably above the OECD average and above the US, Australia and Japan.

“However, perhaps the biggest change is the explosion in the number of end-user devices, and the seemingly ever increasing demand for HD streamed online video.

"You need only look to Vodafone’s TV service, Slingshot and then Orcon’s launch of Global Mode, Spark’s recent launch of their Lightbox service and Video Ezy’s on demand online movie offering.

“Chorus’ Boost proposals and recommendations around the regulated broadband service need to be considered in the context of this sea change in end-user demand for greater throughput.

"If the industry is to be incentivised to invest to deliver better broadband to New Zealanders while in the transition to fibre, it’s essential for clarity on the standard regulated service and guidance on when, and how, new wholesale broadband services will be supported in today’s regulatory environment.”

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