Day of reckoning over Chorus

Chorus share prices could be on the move - but which way? Photo / Supplied

The price of broadband and Chorus shares could be on the move today as the Commerce Commission releases an updated draft decision on wholesale line charges for the company's copper network.

But the question remains: which way?

The commission's ruling has been wrapped in controversy since last year with the "Copper Tax" campaign saying broadband users were paying extra to boost dividends for Chorus shareholders.

There were widespread concerns that an earlier draft determination in December that raised wholesale prices aimed to increase the price of broadband via copper as a way to boost the appeal of ultra-fast broadband.

The current proposal sets Chorus line charges about 80 per cent higher than the equivalent charges in comparable countries - up to $180 more a year for each connection.

The country's biggest telco, Spark, opposed the December draft by promoting submissions from internet users in the "Be Counted" campaign.

As a result there were 52,000 submissions and it will be clear today whether they have had the effect of bringing down prices.

"[Today] is an important day in the development of New Zealand's internet," said Spark general manager corporate relations, Andrew Pirie.

Spark estimated the commission's previously proposed wholesale line charges for accessing Chorus' network would cost internet and landline customers at least $500 million during the next five years.

It said more than 90 per cent of New Zealanders still relied on copper for their broadband or landline connection, and about half of monthly bills went to Chorus for access to its lines network.

The commission is independent but telcos have questioned what role the Government had played in past decisions, which protected the interests of dominant wholesale company Chorus and its key role within the telecommunications sector.