Spark NZ raises broadband, landline prices, blames Chorus ruling

Thursday 17th December 2015

Spark New Zealand is to increase the price of its broadband and landline plans from the beginning of February following the Commerce Commission's decision to allow Chorus to raise the cost of access to its copper wire network.

The cost for a Spark user with a broadband and landline plan will rise by $5 a month, the Auckland-based company said in a statement. Customers with just a landline in Auckland, Wellington and Christchurch will see an increase of $3.50. Those with just a home landline outside of these urban centres will see no rise in their bills.

On Tuesday the regulator released its final determination of what Chorus could charge to access its ageing infrastructure. The price for wholesale access for broadband was set at an average $41.69 a month, up from the $38.43 it had initially suggested.

Spark says the ruling means line charges are almost $8 a month higher for broadband services and just over $7 higher for landline voice services compared to the previous charges. Users of the fibre network won't see any rise, because the ruling only relates to the legacy copper network.

Spark NZ's home, mobile and business chief executive Jason Paris said he was extremely disappointed to have to raise prices.

"This regulatory decision means a significant and unexpected increase in our underlying costs, so unfortunately we have been forced to reflect these costs in our customer pricing."

Spark's shares were recently up 0.6 percent to $3.17 and have gained 1.1 percent since the start of the year.

BusinessDesk.co.nz

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