PROJECTS
Advice to Spark on Fiber Regulation, New Zealand
The problem
New Zealand’s largest retail telecommunications provider (Spark) was worried about losing market share in the fixed-line broadband market. New regulation proposed an increase in access charges to the fixed-line network owned by the national network service provider (Chorus). If prices increased there was a risk that Spark’s premium customers would no longer be able to afford premium services and would trade down to services offered by discount providers.
How we helped
Castalia developed a model to assess how the new access charges would affect full-service providers in comparison to discount providers. We modelled Spark’s revenues under different assumptions of competitor behavior in response to the proposed pricing changes.
Impact
Based on our analysis, Spark made a submission to the Parliamentary Select Committee which was considering legislation that would underpin the new regulatory model. Because of the submission, among other efforts, broadband prices went up less than feared. The threat to Spark was diminished, and the public benefitted because of lower broadband prices.
How can we help you?
How can we help you?
WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America
SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia
AUCKLAND
+64 (4) 913 2800
Sinclair House, 3 Glenside Crescent
New Zealand
WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand
PARIS
+33 (0)1 85 64 10 22
3B Rue Taylor
France
BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-121
Colombia
Thinking for a better world.
WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America
SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia
AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand
WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand
PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France
BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia
Thinking for a better world.