17 Sep 2013

PM stands by Chorus comments

8:29 pm on 17 September 2013

Prime Minister John Key is standing by his statement that telecommunications company Chorus could go broke if lower prices for copper broadband are put in place.

The Commerce Commission has made a draft determination the copper price be cut by 25%.

On Friday, Mr Key said if the commission's ruling stood, there was a chance copper network owner Chorus could go broke.

In Parliament on Tuesday, he said he stood by his view for a number of reasons, including a statement from Chorus last year about the potential impact of the commission's draft determination.

Chorus indicated it could have to rethink its business model and capital structure, and could lose up to $160 million in annual earnings.