Monday, March 06, 2006

The connection Labour doesnt want you to make

Why is the normally heavy handed Labour Government so reticent to regulate Telecom?

I would suggest that as:
"Telecom's recently announced broadband prices are amongst the lowest in the OECD"
http://www.nzherald.co.nz/section/story.cfm?c_id=5&ObjectID=10371211

Then the lack of affordability must be down to the low wage economy - Labours problem, not Telecoms...

6 comments:

burt said...

When it comes to discretionary spending, I'd put $1 on it that many hard core Labour voters would rather spend $40/Month on Lotto than Broadband Internet.

Their party has taught them well that hope and dreams are better than knowledge and truth.

iiq374 said...

Only $1? Normally if I can find an arbitrage I go in whole hog...

burt said...

Telecom knocking is a national pasttime in this country. But when the govt attempt to curry political support by knocking the beast they gave birth to and nurtured into nothing more than sheltered workshop before selling it - you have to wonder.

People quickly forget that under Govt control Telecom had squillions of employees and needed financial 'top-ups' every year. Service was pathetic and technologies implemented were basically cast off's from what we could almost call third world countries.

Now they (Telecom) make a profit and we all think it's terrible. Go figure... even if Phone Line rentals were twice their current price the real price to NZ consumers has gone way down. Just we see it now rather than it being hidden as a few cents from every tax $$$ we paid.

PS: I don't, never have and probably never will work for Telecom :-)

burt said...

Oh BTW: I would like to see a more competitive market, but the Socialist 'Kiwishare' pretty much knobbles that possibility.

iiq374 said...

Yup - the Kiwishare is also a major impediment to broadband takeup.

When comparing the cost of broadband in this country to the OECD most commentators seem to forget that those other countries charge for local calls - IE the difference in cost between dialup and broadband is actually inversed for heavy internet users.

iiq374 said...

The Homeline Economy option that Telecom had for a while was brilliant - unfortunatly its pulling due to TelstraClears complaints has put us back a long way in the competitive landscape.