In May we consulted with you on a proposal to adjust our fibre prices by reference to March CPI (expressed as 6.65%) from 1 October 2023. We received limited feedback during the consultation period, with a mix of verbal and written submissions. Not all respondents were comfortable to have their feedback shared, so we have summarised key points below: 

• The responses varied: some advised they understood the rationale and that the proposed changes were largely what they expected, while others viewed the increases as opportunistic. 
• Comments were received on the increased cost pressures consumers face and that some providers will not be able to absorb any increase. 
• We were also told that maintaining a gap between the consumer and Small Business Fibre plans is helpful. 

We have experienced significant cost increases over the past year in running and maintaining our fibre network as well as being aware of the need for ongoing investment to ensure future resilience. We have decided to go ahead with the proposed CPI increase on 1 October 2023 to reflect this. 

We are confirming the following changes from 1 October 2023: 

The increase for our Broadband Anchor, Voice Anchor and LUDFAS services which are subject to annual CPI adjusted price caps will be the lower of either March 2023 or June 2023 CPI. The new price applied will be calculated as: 

Price at 30 September 2023 plus (price at 30 September 2023 multiplied by relevant CPI adjustment percentage).

The relevant CPI adjustment percentage will be the lower of either:  

1. The announced March 2023 quarter CPI rate expressed as 6.65%; or  
2. The percentage by which the CPI – All Groups index published by Statistics New Zealand for the June quarter 2023 exceeds the June quarter 2022 (i.e., the June 2023 quarter CPI rate).    

This will also apply to the increase on the Fibre 300 plan, which we have tethered to the Broadband Anchor service pricing for RP1. We will publish a further customer update confirming the final adjusted prices once the June 2023 CPI is announced on 19 July. 

We will apply the March CPI rate of 6.65% to all other fibre services except: 

• The increase to Small Business Fibre 500 will be the lower of: a March CPI (6.65%) increase; or $5 above the increased price of the Fibre 300 plan. 
• We will remove the Hyperfibre ONT Upgrade Fee (currently $199) and hold all current price points for our Hyperfibre plans to make the upsell offering even more attractive. 
• We’re very conscious of the current cost of living crisis and will continue to hold our Home Fibre Starter 50 price at $35.00 where the retail price cap is met. Where the retail price cap is exceeded, the standard Fibre 50 price will apply. 
• We will limit the increase of our Small Business Fibre Max plan to 2.86% to maintain the $5 premium to the Consumer Max plan. 
• In addition to Hyperfibre and Home Fibre Starter 50 mentioned above, we will also hold the current prices for the following services: 
  • Education Max 
  • Business Premium 
  • Mobile Access 
  • SFP Smart Locations 50/50 
  • Chorus Data Centre Connect 
  • Chorus Relay Connect 
  • Chorus Regional Transport 
  • Intra-Candidate Area Backhaul Service links of over 40km which are priced as Step C in the current Price List are being excluded from the 1 October 2023 price adjustment. We have customers currently taking connections on 5 of these specific links of ICABS. We are currently considering how to align these with the wider backhaul portfolio and will issue a separate customer update and consultation in relation to ICABS and its pricing (including diverse or specified route pricing) in the near future before any changes are made.

You can find a full list of all changes here. 

Important note: This customer update serves as formal notice of the proposed price changes in accordance with clauses 24.4(b) and 24.5(b) of the 2022 CSA/Reference Offer and these will take effect from 1 October 2023.

Next Steps 

We’ll continue to keep our dedicated webpage up to date moving forwards and will update our published price lists on 1 October 2023. 

We’ll also publish a further customer update confirming the increased price of Anchor Broadband, Anchor Voice, LUDFAS, Fibre 300 and Small Business Fibre 500 once the June 2023 quarter CPI rate is known, including a spreadsheet with revised prices for those fibre services. We expect the June quarter index to be published by Statistics NZ on 19 July 2023 and intend to publish the customer update as soon as practicable after that.   

Service providers will receive their first invoices reflecting the CPI price changes in the October 2023 billing cycle. 

Contact

Please contact your account team with any queries.