Coalition for Fair Internet Pricing emerges to fight 'copper tax'

Industry and consumer groups are joining forces to campaign against what they describe as a government imposed internet tax to subsidise Chorus.

The controversy stems from concerns that emerged earlier in the year that Commerce Commission UBA price cuts could threaten Chorus's ability to finance the UFB rollout. International experts warned the government had driven too hard a bargain on UFB contracts and Prime Minister John Key indicated the government might intervene to prevent the price cuts.

The group, calling itself The Coalition for Fair Internet Pricing is holding a press conference later today in Wellington. Members include:

Consumer NZ, InternetNZ, and the Telecommunication Users Association of New Zealand (TUANZ), CallPlus and Slingshot, the Federation of Māori Authorities, Greypower, Hautaki Trust, KiwiBlog, KLR Holdings, National Urban Māori Authorities, New Zealand Union of Students’ Associations, Orcon, Rural Women, Te Huarahi Tika Trust and the Unite Union.

Campaign has mobile termination rates pedigree

Today’s press conference is organised by Exceltium Ltd a corporate affairs consultancy that was behind the earlier Drop The Rate Mate campaign. That successfully pressured the government to lower mobile termination rates.

The consultancy has the ear of key National Party members.

Labour communications spokesperson Clare Curran has been critical of government plans to intervene in UBA pricing, describing it as a $100 million bailout for Chorus despite the company posting a healthy $171 million net profit for 2013.

Labour communications spokesperson Clare Curran had already labeled the government's plan a '$100 million copper tax'two weeks earlier, criticising Chorus for seeking a bailout while posting a healthy $171 million net profit for 2013.

Fear of competitive pricing

Curran worries Chorus can use competitive copper pricing in the areas where it doesn’t control the fibre roll out.

She says: “Chorus can undercut the three smaller taxpayer supported UFB companies in Northland, the mid-North Island and Canterbury in order to protect its own business. This is called pocket pricing; it is an extraordinary rort.”

No doubt there will be more similar comments at today’s event.