Ann: GENERAL: SPK: Spark NZ increases prices to reflect higher Chorus charges

• Release Date: 17/12/15 15:04
• Summary: GENERAL: SPK: Spark NZ increases prices to reflect higher Chorus charges
• Price Sensitive: No
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					SPK
17/12/2015 15:04
GENERAL
NOT PRICE SENSITIVE
REL: 1504 HRS Spark New Zealand Limited

GENERAL: SPK: Spark NZ increases prices to reflect higher Chorus charges

Market Release

17 December 2015

Spark NZ increases prices to reflect higher Chorus copper lines charges

Spark NZ said today it will raise prices for some of its broadband and
landline plans from 1 February 2016. The price of ADSL and VDSL Broadband
plans will increase by $5 a month, and home landline customers in Auckland,
Wellington and Christchurch will receive an increase of $3.50. There will be
no change to fibre prices.

This is a result of this week's Commerce Commission decision to significantly
increase regulated Chorus line charges for copper broadband and landline
services. The new Chorus charges, which took effect from yesterday, are
almost $8 per month (including GST) higher for broadband services and just
over $7 higher for landline voice services, compared with the previous
charges. Chorus line charges make up more than half what most New Zealanders
pay for their broadband or landline services.

Spark NZ's CEO for Home, Mobile and Business, Jason Paris, said he was
extremely disappointed about the need for Spark NZ to increase prices.

"We have worked hard over the past few years to keep prices as low as
possible, and we want to keep them that way. However, this regulatory
decision means a significant and unexpected increase in our underlying costs,
so unfortunately we have been forced to reflect these costs in our customer
pricing."

Spark stands by commitment to return savings to customers

Paris said the decision not to backdate when the new higher Chorus line
charges came into effect was the only sliver of good news in the Commerce
Commission's decision.

"In light of the Commerce Commission's earlier threat of backdating, we put
up our prices in February this year. At the time, we said that if there was
no backdating, we would do the right thing and return savings where we could
to customers who were affected by the price increases in February and
remained on their impacted plan. We're the only broadband provider who has
publicly committed to do this.

"We intend to make good on this commitment and give something back to our
customers in the coming months, as long as the decision on backdating is not
subject to appeal."

Paris said eligible home landline customers in Auckland, Wellington and
Christchurch would receive a credit on their monthly bills, while eligible
40GB and 80GB ADSL/VDSL broadband customers nationwide would have the choice
of a few options, one of which will be an account  credit. Spark will proceed
with giving these savings back from March, provided there are no appeal
proceedings.

Home landline customers outside the three main centres will not receive any
credit but their prices will not be increased in February, despite the cost
of higher Chorus lines charges Spark will face.

ADSL / VDSL customers on Unlimited plans will also not be eligible for a
savings credit, as their plan prices did not increase earlier this year and
instead were reduced by $10 a month.

More information on the return of savings will be available for customers in
the next few weeks.

Spark customers on Ultra Fibre broadband plans will not face price increases,
as their services are not dependent on the Chorus copper network and thus are
not affected by the increases in Chorus regulated charges.

-ENDS-

For media queries, please contact:
Richard Llewellyn
Head of Corporate Communications +64 (0) 27 523 2362

For investor relations queries, please contact:
Stefan Knight
General Manager Finance & Business Performance +64 (0) 27 252 9438
End CA:00275319 For:SPK    Type:GENERAL    Time:2015-12-17 15:04:38