Government intervention on copper prices hands Chorus ‘windfall gains’, Vector says

Thu, 17 Oct 2013

By Paul McBeth Oct. 17 (BusinessDesk) - The government’s proposed intervention limiting the cut in wholesale prices on Chorus’s copper network will grant the telecommunications company “windfall gains”, according to fellow regulated monopoly network operator Vector. In a submission on law governing the telecommunications sector, Vector says the government’s proposal to set copper access prices would let Chorus extract a return on investment of 20 percent in the 2014/15 financial year, rising to 25 percent by 2019/20. Vector has based that f...

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