Broadband customers to pay $20 extra for faster connections

Telecom, Vodafone

As per the media reports, nearly $20 a month would have to be paid by Broadband customers for superfast internet connections to be provided later this year by Telecom Wholesale.

However, this might not happen if the Commerce Commission, which is looking into the charges, intervenes.

Telecom is mulling to provide businesses and consumers who live within a kilometre of its exchanges and roadside cabinets download speeds of 50 megabits a second, four times faster than it can deliver over copper phone lines today. Furthermore, the latest generation of DSL broadband equipment, VDSL2; will be used for the connectivity services.

In the month of March, Wholesale head Matt Crockett specified that he hoped the service would attract small businesses and viewers of high-definition internet television the most. He continued, "Telecom's residential broadband plans retail for between $30 and $80 a month. The price premium for VDSL2 could be higher than $20 if retailers add their own margin."

It was informed by Graham Walmsley, head of wholesale and regulatory affairs at junior telecom company CallPlus that Vodafone has been joined by his company and state-owned internet provider Orcon in filing a complaint with the commission, challenging the higher pricing.

Mr Walmsley said, "VDSL2 was just another iteration of DSL technology, similar to ADSL and ADSL2+, and Telecom should provide it on the same terms, which had been set out by the commission in past determinations."

The complaints are being assessed by the commission, said a commission spokeswoman.