New Zealand consumers wanting to tap into the ultrafast broadband network will be mainly concerned with the cost of connection and availability of video content, according to the antitrust regulator.
The Commerce Commission identified the cost of connecting to the network as a significant threat to broadband uptake if it's too expensive, and video content as the biggest drawcard for households to buy into the service, according to its draft report on facts that could affect uptake of high-speed internet. The antitrust regulator also noted rural users are lacking connection to a basic network.
"Two main areas have been identified as being important to consumers - costs relating to connecting and using high-speed broadband, and the availability of video-on-demand services," Telecommunications Commissioner Ross Patterson said in a statement. "Users in rural areas have identified a more fundamental need, which is to be connected to basic broadband."
The draft report comes after the regulator last week launched a probe into Sky Network Television's rights over video content and contracts with internet service providers amid criticism the News Corp-controlled pay-TV operator was using its market position to unfairly squeeze out rivals.
In the first issues paper published by the regulator, Telecom estimated replacing customer premises equipment to switch over from the ageing copper network would cost some $811 million.
