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Flip backs Internet Party vision to half NZ broadband costs

03 Apr 2014

Growing Kiwi internet provider Flip is backing the policy of Kim Dotcom’s political party, in a bid to drive down broadband costs even further.

“Love them or hate them, no-one can argue with the daring vision of the Internet Party in halving the cost of broadband in New Zealand,” says Michael Shirley, General Manager, Flip.

“This is what Flip set out to achieve just over a year ago and we remain well on track to do it.”

Shirley says while Flip does not support any political party, it backs the Internet Party’s bold broadband vision.

“We believe it is entirely possible to achieve because the largest portion of the costs that contribute to providing a broadband service in this country are in fact the super profits being paid to companies with foreign owned investors," he says.

"It is also a well-known fact that another competing fibre cable to the USA supported by the government could significantly reduce the price of international bandwidth to a degree that all ISP's should be able to remove data caps.

“Ultimately this will start driving innovative new services and lift NZs OECD ranking in broadband services.”

He says although the Commerce Commission's new UBA pricing will bring costs closer to the actual cost of supplying the service, it still provides Chorus with a large profit margin.

“Unfortunately the regulatory has still not initiated a review of other broadband components, such as the ability of ISPs to unbundle cabinets, which will improve the level of service and competition throughout New Zealand even further.”

Shirley says a review of the UFB project is also critical to ensure that priority is given to completing the fibre roll out to every street in New Zealand as soon as possible - rather than concentrating on connecting fibre to a few privileged households.

“Only then will competition ensure the most effective means of access to each household, whether it be fibre, enhanced copper or wireless.

"So let’s focus on driving prices down while improving the quality and speed of services customers can get in this great country.

"This will move the focus to investing in the new and innovative services that will ultimately drive the digital economy.”

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