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Postponed - Proposed UFB price changes from 1 July 2020

On 4 March we announced proposed UFB pricing changes by reference to CPI to take effect from 1 July 2020.  We’ve now decided to postpone these price changes until at least 1 October 2020.

What’s happening?

Since we announced these proposed changes the spread of the COVID-19 virus has increasingly impacted countries around the world, posing a serious risk to the global economy.

We understand we provide strategically critical infrastructure that will be absolutely essential to New Zealand during this time.  In addition, we are very aware of the need to keep as many people as possible connected.  In that context and as we indicated in our media release on 23 March, we’ve decided to postpone the proposed CPI price increase which was to be implemented from 1 July 2020 until at least 1 October 2020 and potentially longer.

It is important to note there will be no backdating if we decide to implement the proposed CPI price increase from 1 October 2020 or a later date.

We will continue with the price reductions on 1 July 2020 to our Fibre Max (Gig) plans as originally planned and as set out below:

NGA Plan

Current price

From 1 July 2020

Consumer Max 500 2.5-2.5

$60.00

$56.00

SME Max 500 2.5-2.5

$70.00

$66.00

We are hopeful this price reduction will help support improved working from home.

Next steps

Go-live for gig price reductions from 1 July 2020

The proposed Fibre Max (Gig) price reductions will be implemented from 1 July 2020.  Service providers will receive their first invoices reflecting the CPI price changes in the 27 June billing cycle.

No change – Copper price changes by reference to CPI

This postponement has no impact on the annual process for CPI adjustment under the standard terms determinations (STD) for regulated copper services.  The STD price change process will continue as per usual later this calendar year.

Implication for possible price cap changes

Given our decision to postpone until at least 1 October 2020, we are considering the associated implications for any proposed CPI adjustment to the price caps under the NIPAs agreed between us and Crown Infrastructure Partners. The NIPA price caps set the maximum price we may charge for a fibre service and are separate from the wholesale price, being what we actually charge service providers. 

We’ll let you know as soon as we have more details on our proposed approach to possible CPI adjustments to price caps from 1 July 2020. 

Contact

For any queries please contact your Account Lead or Service Delivery Manager at first instance.