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Chorus is pressing the Commerce Commission to tighten broadband marketing rules to ensure 5G providers don’t leave consumers without the information needed to make informed broadband choices.
In the fibre company’s submission on regulator’s proposed updates to broadband marketing guidelines, Chorus accused retailers such as One NZ and 2degrees of hiding critical 5G wireless broadband performance details.
“It’s essential that Kiwis can make clear, meaningful comparisons when choosing a broadband service for their household,” said Julian Kersey, Chorus’ chief corporate and regulatory officer.
“They deserve straightforward, honest information – no spin, no guesswork,” Kersey said. “Without transparency across all providers, New Zealanders are left in the dark, and that’s simply not good enough.”
The commission’s “Measuring Broadband NZ” report currently excludes full 5G wireless broadband data, making it impossible for consumers to know what they were getting, Chorus said while demanding expanded reporting from all major service providers.
“Consumers aren’t receiving sufficient upfront information about 5G to make informed purchasing decisions,” Kersey said. “They are also left without a way to know whether the performance they’ve paid for is being delivered.”
Consumers couldn’t know if 5G was delivering what was promised on the tin, he said, because the 5G tin “doesn’t say anything at all”.
Consumers also needed to understand that 5G services perform with variability.
“The current 5G marketing practices often obscure the reality, which could lead to consumer frustration and lost trust,” Kersey said. “Stronger guidelines are essential to ensure transparency and fair competition in the broadband market.”
5G wireless service providers needed to be held to the same standards as providers of other broadband options, he said.
Chorus also recommended mandatory, location-based performance disclosures because of the range of factors which could affect 5G performance, including distance and the number of customers connected to the nearest cell tower.
The commission’s proposed revised guidelines focus on clarifying broadband speed disclosures and standardising the grounds for an “exit right” to prevent lock-in issues.
Earlier today, the commission announced it was filing criminal charges against One NZ for representations made in its April 2023 satellite broadband campaign promoting “100 per cent mobile coverage. Launching 2024″.