Chorus won't appeal copper price, unless someone else does

Chorus says it it will not initiate legal appeals on the final regulated pricing of copper broadband services.

After years of wrangling, the Commerce Commission announced its final wholesale pricing for copper services on 15 December 2015. The deadline for appeals is 3 February.

"After full consideration of all facets of the final determination, the Chorus Board has elected not to appeal the decision, despite disagreeing with some key elements such as the lack of backdating," Chorus chairman Patrick Strange said.
Chorus will focus instead on the Government's regulatory review, Strange said.

"We must not repeat the major market distortions of the last four years.

"Long term predictability and certainty are essential if New Zealand is to continue to benefit from investment in world class networks."

If other parties file appeals, however, Chorus said it is likely to cross-appeal.

The regulator's final determination was NZ$120 million higher than the pricing proposed by the Commerce Commission based on its original 2013 international benchmarking analysis.

Chorus' shares spiked sharply when the news was announced last month, at one point up nearly 20 percent on the day from NZ$3.10 at opening to a high of NZ$3.75. This morning they were trading at NZ$3.72

The final determination had telco retailer Spark fuming, describing the it as the "worst possible Christmas present for New Zealand consumers and businesses".

However, Spark has also said it will not appeal in order to "draw a line" under the prolonged stoush.