Spark will hike retail prices for its home phone and broadband plans from February, blaming the smaller reduction in regulated wholesale prices on Chorus' copper network.
The Auckland-based company will raise prices on homephone-only, and 40 gigabyte and 80GB broadband plans by between $2.50 and $4.25 a month from Feb. 1 after the Commerce Commission this month indicated plans to cut wholesale telecommunications prices by a smaller amount than previously flagged, it said in a statement. While the price increases are on Spark's lower-end plans, the retail service provider is making its unlimited broadband plan more attractive, trimming $10 a month from the package and dropping its 150GB and 500GB plans.
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"Market competition has brought great value for customers and the expected wholesale cost reduction for Spark and other ISPs (internet service providers) has been built into current broadband prices," said Chris Quin, Spark home, mobile and business chief executive. "Given this negative uncertainty, Spark has no choice but to change its prices now."
Last week Spark warned it was reviewing its prices after Telecommunications Commissioner Stephen Gale's draft decision to set the monthly total charge allowable for the unbundled copper local loop (UCLL) and for unbundled bitstream access (UBA) at $38.39, up from the $34.44 monthly regulated price that came into effect on Dec. 1. That's still lower than the $44.98 monthly rental that had applied until December. Spark accounts for almost three-quarters of Chorus's annual revenue.