Internet NZ - ignore Chorus broadband hurry-up

A decision by the Commerce Commission on wholesale broadband prices has been delayed. Photo / NZME.

Internet NZ says calls for speed in the Commerce Commission's final pricing process for wholesale broadband rates that will apply to Chorus are self-serving and should be ignored.

The user group's comments come after Shareholders Association chairman John Hawkins lashed out at the regulator over its delays in determining the final prices the lines company will charge retailers such as Vodafone and Orcon for monthly broadband service and line access over its copper network.

Internet NZ chief executive Jordan Carter said the regulator had an important job to ensure it balanced the interests of Chorus, internet service providers and consumers in getting copper price right.

"Rushing this work risks errors, and errors risk higher prices for internet users in New Zealand, which is just gifting Chorus money, so of course they want haste," Carter said. "If we act in haste then we're forced into trusting Chorus' data and only Chorus' data in making this decision. And that's like leaving a rabbit in charge of the carrot patch."

Chorus announced yesterday that the Commission intended to further extend the timetable on the pricing review, with final decisions now due by December.

Hawkins said the pricing determination and the degree to which it was backdated were crucial for Chorus shareholders, who were receiving no dividends while the company struggled with reduced earnings.

"The Commerce Commission needs to get its act together as these repeated delays are prolonging the regulatory uncertainty and damaging the credibility of the New Zealand capital markets," he said.

A Chorus spokesman said it was disappointing to have yet another significant timetabling delay.

"We don't accept that our cross submission introduced substantial new information," he said.

"It is one issue of many in our cross-submission and we don't see it as a justification to delay the process further."

Chorus shares, which have gained 71 per cent in past 12 months, recently traded down 1c at $3.01.