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Why John Key can’t duck the blame for internet and phone price increases

Why John Key can’t duck the blame for internet and phone price increases

“Meanwhile it’s the poor old consumer who gets to pay the price."

Shareholders are winning out over Kiwi households in the latest episode of the long-running fiasco on copper network phone and internet prices.

That's the damning view of Clare Curran, Labour ICT spokesperson, who believes Prime Minister John Key "can't duck the blame for internet and phone price increases."

“As predicted last week hundreds of thousands of Kiwi households now face monthly price rises for their phone and internet connections after Spark, Vodafone and Callplus all announced prices hikes," Curran adds.

“John Key’s controversial assurance two years ago to Chorus Chair Sue Sheldon that that he would sort out the copper price issue to protect Chorus shareholders continues to hurt Kiwi households."

According to Curran, when the Commerce Commission accepted Chorus’ argument about the value and replacement cost of a new network "the die was cast" to keep the copper broadband price higher.

“The telcos are now raising prices to protect their own revenue margins and satisfy their shareholders," Curran adds.

“Meanwhile it’s the poor old consumer who gets to pay the price."

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