Patience on Chorus call runs out

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

The Shareholders Association has issued a sharp rebuke to the Commerce Commission over its delays in determining the final wholesale broadband prices that will apply to Chorus.

The lines firm yesterday said the regulator intended to further extend the timetable on the pricing review, with final decisions now due by December.

"This is the fourth significant timetabling delay since the process started in February 2013," said Chorus chief executive Mark Ratcliffe.

Shareholders Association chairman John Hawkins said the commission's "monopoly position" was resulting in a standard of service that fell well below what it expected of the industries it regulated.

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, he said.

The prices are what Chorus charges internet retailers such as Orcon or Vodafone for monthly broadband services and line access over its copper network.

Hawkins said the regulatory uncertainly meant investors might be reluctant to commit funds to future communications technology projects. "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.

Chorus shares closed up 2.5c at $3.02 last night.