17 Sep 2013

Vodphone says intervention ill-conceived

6:32 pm on 17 September 2013

Vodafone says the Government's review of the legislation overseeing the transition to the fibre network is an ill-conceived intervention.

It's the latest company to make its submission on the review of the Telecommunications Act public.

The Government brought the review forward after the Commerce Commission proposed slashing the prices Chorus could charge retailers for access to broadband over the copper network.

Chorus said that would eat into its revenue and delay takeup of the fibre network.

The Government has raised concerns over the financial viability of Chorus if the watchdog's proposals were to go ahead.

Vodafone said that the Government's review failed to adequately define the problem it intended to solve and that concerns over Chorus' financial stability were questionnable.

But in an independent report on behalf of Chorus, the former Telecommunications Commissioner, Ross Patterson, said the current legislation was not fit for purpose and was causing regulatory uncertainty.