Chorus 'crying wolf' over financial concerns?
Critics of the ultrafast broadband provider, Chorus, say the internet provider is looking for more taxpayer funding, and can sustain the Commerce Commission's recommended pricing.
Speaking on TV3's The Nation this weekend Sue Chetwin, spokesperson for the Coalition For Fair Internet Pricing, said the Government's inquiry into the internet provider was necessary and overdue.
"[The Government] is doing now what it should have done right at the very start is having a look at Chorus, and saying 'Look, you're crying wolf basically, you're saying that you might go broke if you don't get extra funding from taxpayers,' and that's what its all about.
"Don't forget that Chorus tendered the ultra fast broadband roll out - they got a billion dollars from us, and now they're asking for more. So I think it is completely appropriate for the Government to have a look at its books and really see for itself if it does require more funding," says Ms Chetwin.
The Commerce Commission has recommended a price cut of 23 per cent to Chorus, but the ultra fast broadband providers say the price is too low for them to remain financially feasible.
A claim which Ms Chetwin does not believe.
"We don't really believe that is a valid assessment. [Chorus] made a significant profit last year, something in the order of a $170 million, and paid out $95 million in dividends."
So far only three per cent of New Zealanders have taken up ultra fast broadband where it is available.
Ms Chetwin says take up of the service will increase over time, and says ultra fast broadband will remain more expensive than the copper delivered alternative
NBR Staff
Sun, 10 Nov 2013
Sun, 10 Nov 2013
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Chorus 'crying wolf' over financial concerns?
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