Chorus of approval: wholesaler welcomes UBA rate hike

3 Dec 2014

New Zealand’s Commerce Commission has revised the proposed pricing that wholesale provider Chorus must charge telcos for access to its copper lines. Under the new rules for unbundled bitstream access (UBA) Chorus will be able to charge operators NZD38.39 (USD30.10) a month for access rather than the rate of NZD34.44 which was proposed by the regulator last year and which came into force earlier this week (1 December). If approved, the new rate will be backdated to 1 December; a final decision is expected by April next year.

Although still well down on the previous UBA price of NZD44.98 a month, Reuters reports that Chorus has welcomed the move, saying that its EBITDA will now be impacted by around NZD80 million a year rather than the NZD170 million a year it had originally expected. The Commission says the new wholesale price includes an element for unbundled copper local loop (NZD28.22) and basic UBA (NZD10.17).