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Slower service for a higher price
17 January 2006 13 January 2006
Slower service for a higher price: duopoly
stitch-up hurts broadband users Media release - for
immediate release
"Today's announcement of a deal between
Telecom and TelstraClear on a range of wholesale matters is
good news for TelstraClear, but potentially bad news for
Internet users," said InternetNZ Executive Director Keith
Davidson, commenting on the late-afternoon release of
details of a settlement between the two companies.
The
deal covers discount for wholesale services including home
phone lines, lower interconnection rates and broadband
services.
"In particular the two Unbundled Bitstream
Service offerings – 256kb and 3.5mb downstream with 128kb
upstream – are inferior to plans that would have been
available to TelstraClear under the Commerce Commission s
UBS determination announced last year.
"Most New
Zealanders will only be able to get broadband at half the
speed they would have been able to get under the
Commission s determination.
"While this is better than the
offers currently available, it is truly a case of 'what
might have been'," said Keith Davidson.
"It is also a pity
that the two companies could not agree on a faster upstream
speed, given that their negotiations were not bound by the
regulatory framework. A lift to the 128kb upstream link
would have been a major improvement for New Zealand
broadband consumers.
"128kb upstream in an unbundled
Internet service is very slow; such a service is still not
true broadband and should not be described as such.
Comparative countries like the UK and Australia have true
broadband: so should New Zealand.
"This action today
simply shows that the current market structure and the
inadequate, light-handed regulatory framework applying to
telecommunications leads to unsatisfactory outcomes for
Kiwi consumers.
"We will look forward to seeing David
Cunliffe's response, when he makes his plans for regulation
public later this year," Keith Davids
Source: scoop
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