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Rural phone and internet customers will get the same services as urbanites for twice the price, if a Commerce Commission draft is upheld.
The Commission's draft decision on local copper loop unbundling was released today, outlining the monthly rental costs that other companies have to pay Telecom, in order to access their customers.
Unbundled Copper Local Loop (UCLL) has been a hot topic in the telecommunications world, and basically means Telecom is forced to allow other companies access to the copper wire that runs from exchanges to homes.
This means these companies - mainly internet service providers - will be able to install their own equipment directly into telephone exchanges.
Third party providers will not have to enter into seperate agreements with Telecom in order to install equipment.
The charge suggested by the Commerce Commission's draft is $16.94 for urban areas, but in rural areas the cost will be $32.20. Transferring a customer to the UCLL services will attract a one-off charge of $83.70.
Service providers will have little choice but to pass these costs onto customers.
"The price set for urban lines is at the top end of the range we had anticipated, but at that level urban UCLL investment is definitely viable; we will be pushing ahead with our investment plans" said Orcon chief executive Scott Bartlett.
UCLL is likely to stimulate broadband pricing in major centres, but this is less likely outside cities.
Telecommunications commissioner Dr Ross Patterson is quick to point out that these figures are part of a draft, and subject to further consultation.
