Alternative ops will not be squeezed out of market

2 Oct 2006

Broadband internet operators TelstraClear and iHug have both vowed to continue offering services despite Telecom New Zealand’s recent announcement that it is lowering its cheapest retail tariff to only just above its wholesale price. Telecom says that customers who take both telephone and internet services will be charged as little as NZD29.95 (USD19.56) a month for internet connectivity, while its wholesale customers, who include TelstraClear and iHug, are being charged NZD28.04 a month to gain access to local loop connections, making it difficult for them to compete. The local website stuff.co.nz reports that executives at both alternative operators say they are in negotiations with Telecom over pricing. A regulatory review of the wholesale tariff is also scheduled.

New Zealand, Spark, TelstraClear