As everyone knows, the underlying purpose of our Telecommunications Act is to have a properly competitive market that benefits us, the consumers, for generations to come. To which, as a hapless telecommunications consumer, it's tempting to respond: Fat chance of that ever happening.
The puzzling aspect of this goal is that in the process of enacting the legislation, the consumer's voice is never even sought, let alone heard. The latest example of this absence is in the current discussion called by newly appointed telecommunications commissioner Stephen Gale, with assorted telecommunications industry folk, over whether to reduce the wholesale price of copper.
While there is plenty of huffing and puffing from industry - Chorus, TelstraClear, Vodafone Telecom, CallPlus and others including Chorus shareholders' representative Harbour Asset Management - there's no independent representation for consumers. The absence reflects the lack of a consumer body to speak on telecommunications matters - a role that normally falls on the industry organisation TUANZ - but it's also an indictment on our Commerce Commission. Why is it that in legislation designed to benefit consumers, are those consumers so invisible?
In the current debate Chorus is calling long and loud for the commissioner not to reduce copper pricing, as signalled in the Commission's preliminary decision on the matter. "Investors cannot understand the rationale for reducing copper pricing at the same time that taxpayers are supporting a Government backed programme of investment in fibre," says of Chorus chairman Sue Sheldon. To which consumers, if they were present, might respond: "Investors might not see the rationale Sue, but we certainly do. It means cheaper prices for us, which we think is fair given the cost of copper services has been reducing for some time."
Consumers might also point out that the argument that reducing the price of copper will make fibre less attractive is nuts. Bizarrely, what Chorus and others are really saying is that even though copper is less expensive it should be increased in price - that consumers should pay more for copper for the next six years to prod them to take up fibre when it arrives. What happened to consumer choice? What happened to the free market? As others in the discussion pointed out, such logic is blatantly self-serving.