Chorus moves to High Court over price ruling
Chorus claims it has no option but to head to the High Court in a bid to try to overturn a competition watchdog ruling wanting it to slash its copper broadband pricing by $10 a month.
The commission's ruling cuts the price Chorus can charge for the copper wire broadband and phone services by about $10 a month to $34.44 in December 2014.
The company claims this appeal to the High Court is necessary as the Commerce Commission has not applied the law correctly when making its ruling.
Chorus states that the proposed cut would its financial viability under threat and put at risk its ability to complete the Government's Ultra Fast Broadband rollout.
Prime Minister John Key says the court action does not come as a surprise and he doesn't believe it will impact on its own separate look into Chorus's finances. Today, Mr Key mentioned that the Government could re-negotiate Chorus's contract with the government for UFB as a result of that report.
However Mr Key said he does not want to see Chorus take longer to complete its part of the UFB rollout.
Chorus shares continued to slide on Monday and were down 8.5 cents to $1.44 a share at the close of trade on Monday.
On Friday, they fell as low as $1.47 before recovering a little to close at $1.52.5. At the end of October they were $2.65.
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