Telecom free to set charges for boosted broadband service
The telecommunications commissioner says the market should set the price for the enhanced service.
The telecommunications commissioner says the market should set the price for the enhanced service.
The Commerce Commission has decided against regulating Telecom's new wholesale broadband service VDSL2, or very-high-speed digital subscriber line 2.
It says the new service incorporates features not included in the regulated unbundled bitstream access (UBA) service and it's appropriate the market determinse the price for the enhanced service.
UBA is a regulated wholesale service that allows telecommunications companies to supply a range of broadband services to retail customers.
Telecom Wholesale is required to provide those services covered by the UBA service description on a non-discriminatory basis to its own retail arm Telecom Retail as to other telecommunications companies.
Telecommunications Commissioner Ross Patterson says the commission is satisfied the new service has higher specifications, which differentiates it from the regulated service.
"There has been much debate about the willingness of consumers to pay for upgraded broadband services, and it is appropriate that the price is set by the market," Dr Patterson says.