CNU - Chorus

[Major von Tempsky]

Ha ha ha! See the last sale for CNU this morning? Down 42cps at $2.98! Looks like Stephen Gale is even worse than Ross Patterson.
Well, this will be an interesting test of the calibre of this National Government...will it tamely allow itself to be gratuitously thwarted or will it take a stand to declare itself as investor friendly?
And upon its action or inaction will rest the success or failure of the Mighty River Power float....and the enthusiasm or lack of it at the next election....

[sideline]

Oh! très drôle....decision postponed (see bureaucratic delays) until June next year.
Does this mean that Chorus can keep charging at $24.75 a month until them?

If so its not such a bad decision....

from comcom site:

....
The Commerce Commission has today released its final decision on the wholesale price for access to Chorus’ unbundled copper local loop (UCLL).

The new geographically averaged price is $23.52 per month per line and comes into effect on 1 December 2014. This change equates to a 3.85% reduction on the prices set in 2007, which geographically averaged is $24.46.

Updated urban and non-urban UCLL monthly rental prices of $19.08 and $35.20 respectively have also been set. The updated urban and non-urban prices come into effect immediately.
....

[craic]

Chorus is in big trouble digging up the town here in Napier. Headlines in the paper reports 250 incidents of damage to other underground service since they began including burst water mains and the like. The Mayor is threatening to call a halt and work is suspended in the main Xmas period. A remark, that Chorus have full responsibility for and work to repair damages, does not bode well for their bottom line when they crunch the numbers. I assume that other places have the same problems? Refer tonights DailyTelegraph - front page.

[macduffy]

Looks like panic selling, but its still a bloody disgrace to this country that the regulator can destroy so much investor wealth.

MvT is right, the government should be looked at very closely to see how it will respond.

I wouldn't expect the govt to mount a rescue mission for CNU though. There is a well established precedent for disregard for shareholders' interests when the "public good" is seen to be endangered, eg recent moves against Vector or, more relevantly, Telecom's past treatment. The message is loud and clear - we invest in "regulation prone" companies at our own risk.

Disc: Holding VCT, CNU and TEL.

[Xerof]

http://www.nbr.co.nz/article/chorus-...-key-bd-133405

keep calm and carry on, the cavalry's coming

[troyvdh]

....woof woof.....gnarl....gnarl......woof..woof........... ......sniff......snore.....sniff.................. ...............................

[Major von Tempsky]

(you've done that one already Troy VD, when someone was silly enough to ask you what you really meant and got a whole heap of silly anti-TEL propaganda. Go away and play nursey games somewhere and stop trying to derail the discussion.)

In fact it's gone further than NBR is suggesting, John Key appeared on TV1 News tonight saying it had an intolerable effect on CNU and government UFB policy and he was in favour of legislating to nullify ComComs determination so I would suggest that ComCom's determination will not come into effect in June, nor will it come into effect in December 2013....nor will it come into effect...

(hey Craic, now you partly know what its like living in Chch ;-) ).

[gv1]

Probably the commission is trying to take from haves to the have nots.......

[binary]

Surely the government has to step in and put a halt to this nonsense. They have invested far too much money in UFB to let the Commerce Commission undermine the entire project. I'll happily pay an extra few dollars for broadband each month in order to progress the New Zealand economy.

However now a 50/50 gamble to make a quick likely 30% profit or loss.

Anybody game?

[Zaphod]

Personally, I am more interested in how the ComCom arrived at this decision. If their pricing determination has been based on facts and impeccable analysis, then so be it; that's what the price should be. If we want to maintain any semblance of credibility, then we should not be manipulating the decisions of a supposed impartial entity.

Overall, If the uptake of fibre is not tracking at planned levels, then address the underlying issues by providing further incentives for early adopters, or reduce international transit costs, or break "big content" deals etc.