31 Aug 2023

Public feedback sought on Chorus revenue limits and quality standards

6:48 pm on 31 August 2023
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The Commerce Commission is seeking feedback on the issue before the end of September. (file image) Photo: RNZ

The Commerce Commission is seeking the public's view on resetting revenue limits and quality standards for the country's largest telecommunications infrastructure provider, Chorus.

Under the new regulatory regime for fibre, the commission sets a price quality path, or PQP, amount of money Chorus can earn from its customers.

The regime, which expires at the end of next year, also sets minimum standards the company must deliver to meet the needs of fibre end-users, such as investing in service quality.

The commission must set the new regulatory regime, also known as the PQP2, before the end of next year.

Telecommunications Commissioner Tristan Gilbertson said the regime was intended to incentivise Chorus to act in the best interests of consumers and promote competition in the market.

"Our ultimate goal is to ensure Chorus has incentives to continue investing ahead of demand and providing world-class fibre services to Kiwi consumers," Gilbertson said.

"As we look to set PQP2, our focus is on ensuring that the right investment continues to be made at the right time to deliver benefits for users of fibre services," he said.

"The regime allows for Chorus to push fibre into more remote and rural areas - beyond the current 87-person footprint - if the expansion is underpinned by sound asset management principles and aligns with good telecommunications industry practice."

Cyclone Gabrielle and other extreme weather events this year further highlighted the importance of infrastructure resilience, Gilbertson said.

"The onus is on Chorus to ensure we have what we need to get the job done."

The commission is seeking feedback on the issue before the end of September.

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