Recent study release by the Commerce Commission showed a reductions in Chorus wholesale broadband prices. This decrease resulted in decrease in broadband prices to consumers.
The final decisions on wholesale prices that Chorus could charge internet providers for its broadband services was in December 2015. Took us almost two years to see the change but nonetheless it is a good thing.
The total decrease in prices to customers is just under $4 per month, which isn't much but that is an extra flat white a month or two smashed avocados on toast per year.
The study done by Commer Commission looked at approximately 80,000 consumer bills from internet providers, such as Spark, Vodafone and Vocus.
“We’re pleased that nearly 90% of the wholesale price drop has been passed through to residential consumers. In this case, our regulation reduced wholesale prices and it’s good to see consumers benefiting. At the same time as average prices have been falling, it’s also good to see the value of standard bundles continuing to increase with consumers getting more data for their dollar,” Telecommunications Commissioner Dr Stephen Gale says.
Overall, The Commission regulats the wholesale inputs that are required to supply broadband services and retail fixed-line voice services. Even though it only does that you can definitely see the impact on the broadband prices for consumers. Additionally, it wants to better udnerstand competition in the broadband industry, specifically the effect on retail broadband prices after the change to wholesale prices.
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