Chorus has cut prices internet service providers will pay for gigabit fibre plans. It has also postponed the annual regulated price increase and reduced the price of small business fibre.

From July the wholesale price of a gigabit fibre line will drop from $60 to $56 a month. Chorus CEO JB Rousselot says the value of gigabit plans was seen during the lockdown. They are “…the ideal connection for families who may have multiple people working or learning from home all at the same time.”

The regulated wholesale price of a 100Mbps connection was set to rise from $46 to $47.15. Chorus says this has been delayed until October. The lower prices will deliver savings of around $10 million to service providers. Small business fibre plans will reduce by $3 a month to $52 from July.

Any decision to pass savings on to customers lies with the service providers.

Rousselot also says Chorus has created a $2 million fund to provide relief for those service providers who chose not to cut off customers during the lockdown.

He says; “We support the decision some RSPs made not to cut off customers during the lockdown, which in some cases has seen customers’ debt to them grow, potentially resulting in higher than usual rates of non-payment.

“We have said throughout that Chorus will play its part in supporting RSPs that faced the risk of higher bad debt due to the lockdown. The fund represents an estimate of the increased risk of bad debts experienced by the industry, for the period of the lockdown, based on feedback from retailers and other industry analysis.”