Broadband price hike starts to bite

  • Breaking
  • 06/01/2015

Telecom, Vodafone and Callplus – owner of Slingshot and Orcon – have all announced broadband price hikes for next month.

But each is treating its existing customers differently. Slingshot is putting up most of its broadband plans by $4 a month, but customers already on a fixed-term contract will continue to pay what they do now.

Vodafone is increasing its prices by about the same amount, but will be giving it back in credit to customers on contract.

Spark is putting its prices up by between $2.50 and $4.25, but dropping the cost of its unlimited broadband offering by $10.

Of the four big broadband providers, only Spark so far has updated its website to reflect the new pricing.

The hikes follow a reversal by the Commerce Commission on what lines owner Chorus can charge retail providers for use of its network. On December 1 last year it dropped from $44.98 per customer, per month to $34.44 – but the next day the commission proposed lifting it back up to $38.39.

Most telcos had already lowered their prices to account for the lower rate. Spark said the commission's new pricing would add costs of about $ 60 million a year, and prices would have to rise to cover it.

The new pricing won't be finalised until September, but may be backdated to December 1, 2014.

Vodafone has also signalled it will be raising the cost of its cable and fibre plans, despite not being affected by the Commerce Commission's ruling.

"This, combined with an increase in costs to provide services generally, means Vodafone's prices will need to change to reflect these new conditions," a Vodafone spokesperson told the New Zealand Herald, while Slingshot general manager Taryn Hamilton said broadband would probably never be cheaper than it was last year.

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source: newshub archive